Ebl Ar 2016

annual report 2016
LEVERAGING CORE STRENGTHS

LEVERAGING
Banking industry as a whole is going through a rough
patch with almost all key indicators giving a not-so-
promising figures. Navigating this rough banking weather
CORE
and maintaining a sustainable growth is a challenging task.
Despite the challenges, we have been sailing through with
equanimity, maintaining a sustainable growth by leveraging
our core strengths. Our sound corporate governance, strong
STRENGTHS compliance culture, service excellence, and state-of-the-art

IT platform are sources of our strength. We strongly believe
that an institution with strong ethical values and great
culture survives market shocks better than others. We are the
first bank in the country to achieve Ba3 rating by one of the
top rating agencies of the world, Moody’s. This achievement
speaks for our strong corporate governance and compliance
culture. Our winning run at Asian Banker Retail Banking
Excellence Award for four consecutive years since 2013 is a
mark of our excellence in service delivery. Our accolade of
the Best Bank in Bangladesh from prestigious Euromoney
magazine is recognition of our passion for performance.
And our recent PCI DSS certification will aid us in securely
setting up the process of card businesses and payments with
the prime purpose of reducing card fraud activities.
OUR AWARDS AND RECOGNITIONS
DEFINE WHO WE ARE
We are very much under the grip of this age of digitization The third source of our strength is service excellence. In retail
and virtual reality. The market place, be it product or financial, banking we are now considered by everyone as a leader in
is undergoing rapid changes. The challenge is to ride the the market. The Singapore-based Asian Banker Awards for
bandwagon of digitization and at the same time carry on with Excellence in Retail Banking found our performance as a retail
age-old values. The guiding idea for EBL to meet the new bank at par with the best in banking. We have been awarded
challenges of contemporary market place is to focus on the with the Best Retail Bank in Bangladesh accolade for the last
power of personal touch and relationship banking. No digital four consecutive years.
innovation can take the place of human touch. But that does Our financial stability is a tell-tale story of our sustainable
not stop us to use the most up-to-date IT solutions for banking growth over the 25 years journey. This year EBL is officially
infrastructure. turning 25 on 19 August.
State-of-the-art IT solutions is one of the key sources of strength The rating by a top global agency like Moody’s in March 2016
for the bank. The second key area of our strength is our corporate was a high point in our journey to excellence. Moody’s assigned
governance. Effective corporate governance in accordance with us Ba3 rating with stable outlook. The rating is equivalent to
high international standards is of paramount importance to country sovereign of Bangladesh. EBL is the first company in
Eastern Bank. Our system of corporate governance provides the country to achieve this commendable feat.
the basis for the responsible management, transparency of In 2016 the jury of Euromoney Awards for Excellence conferred
processes and compliance to regulatory bodies with a focus on the Best Bank in Bangladesh for its professionalism, prudence,
sustainable value creation. Our continuous effort to adopt and and growth. It also referred EBL’s depleting NPL ratio as mark
adapt to international best practices in corporate governance of health. In 2016 at 2.69% we kept the ratio well below 3%
has been recognized by Institute of Chartered Secretaries of with our prudential risk management. Moody’s has also vested
Bangladesh (ICSB). We have got recognition for last three their confidence in us for the second year by reconfirming Ba3
consecutive years at the ICSB National Award for Corporate ratings with stable outlook.
Governance Excellence award.
We at EBL are not going to rest on our laurels and achieve new
Our relentless effort to upgrade and update on every account grounds and highs through leveraging our core strengths in
of standardization is reflected in our Operations department’s different areas of functioning. As we are turning 25 this year we
recent ISO 9001: 2015 certification. would like to make it special in every way possible.
Euromoney Best Bank in Bangladesh Award 2016 Best Retail Bank in Bangladesh 2016
awarded by the Asian Banker
Moody’s awards EBL long-term rating Ba3. ICSB National Award for Corporate Governance
Excellence 2014.
The 16th ICAB National Awards for the Best ICSB National Award for Corporate Governance
Presented Annual Reports 2015 Excellence 2015.
ICAB Corporate Governance Award 2015 SAARC Anniversary Awards for Corporate
Governance Disclosures 2015
CONTENTS
Preamble Letter of Transmittal 6

Scope and Boundary of Integrated Report 7
Disclaimer 8
Organizational Vision & Mission 9

Overview Values 10
Strategic Priority 11
Corporate Directory 12
EBL Organogram 14
Board of Directors 16
Management Committees 24
Code of Conduct and Ethical Guidelines 29
Company Milestones 30
Business Model Business Model and Value Creation 32

Stakeholder Engagement 35
External Environment 36
Materiality 38
Our Products & Services 39
Stewardship Chairman’s Statement 42
Review of the Managing Director & CEO 46
Directors’ Report 2016 48
Stakeholders’ Financial Highlights 54

Information Five-Year Progression of EBL 54
Market Price Information 56
DSE Price Volume Chart of EBL Share 2016 56
Vital Graphs 57
Horizontal and Vertical Analysis 60
Value Added Statement 62
Economic Value Added Statement 63
Market Value Added Statement 63
Financial Goals and Performance 63
Financial Calendar 64
Glimpses From 24th AGM 65
Governance Directors’ Responsibility Statement 67

Reports Report of the Audit Committee 69
Report of the Risk Management Committee of the Board 72
Corporate Governance Report 74
Certificate on Compliance of Corporate Governance Guidelines 97
Risk Management Report 99
Management of Non-performing Loan (NPL) 115
Recovery of Classified and Written off Loans 117
Disclosures on Risk Based Capital (Basel III) 119
Sustainability Foreword 132
Report Sustainability: An Overview 133
Sustainability Governance 133
Performance Highlights 2016 134
Key Strategic Issues 135
Material Aspects for Sustainability 136
Commitment to Sustainable Development 136
Environmental Aspect 137
Online Banking & Green Marketing 138
Economic Aspect 138
Social Impact 139
Sustainability Plan 2017-2020 141
Corporate Our Corporate Citizenship Strategy 142

Social Education for Social Development 142
Responsibility Contribution to National Exchequer 142
We are Environment-responsive 143
Empowering Women 143
Disaster Management and our Commitment 143
Management Financial Review 146

Discussion and Segment Analysis 148
Business Review:
Analysis • Corporate Banking 149
• Treasury 152
• Consumer Banking 155
• SME Banking 159
Review of EBL Subsidiaries 162
Capital Planning and Management 166
Centralization for Operational Efficiency 167
IT: The Enabler of Business 169
Service Quality- Aspiring to be the “Bank of Choice” 170
Human Capital 173
Human Resource Accounting 176
EBL Nest: A Center for Idea Generation 178
Financial Statement on Integrity of Financial Statements 181

Reports 2016 Auditor’s Report to the Shareholders 182
Consolidated & Separate Financial Statements 184
Highlights on the Overall Activities/Performance 255
Financial Statements of Offshore Banking Unit (OBU) 256
Financial Statements of the Subsidiaries:
• EBL Securities Limited 263
• EBL Investments Limited 271
• EBL Finance (HK) Limited 277
• EBL Asset Management Limited 287
Supplementary Annual Report Disclosure Checklist 292

Information Corporate Governance Disclosure Checklist 295
Summary of GRI G4 Content Index 297
Integrated Reporting Checklist 298
Branch Network 299
Correspondent Bank Network 301
Abbreviations 305
Notice and Notice of the 25th AGM 306

Proxy Form Proxy Form 307
6 Annual Report 2016 Eastern Bank Ltd. PREAMBLE
LETTER OF TRANSMITTAL
All Shareholders of Eastern Bank Limited
Bangladesh Bank
Bangladesh Securities and Exchange Commission (BSEC)
Registrar of Joint stock Companies & Firms
Dhaka Stock Exchange Limited (DSE)
Chittagong Stock Exchange Limited (CSE)
Dear Sir,
Annual report of Eastern Bank Limited for the year ended 31 December 2016.
We are pleased to present before you the Bank’s (EBL) Annual Report 2016 along with the audited Financial Statements
(Consolidated and Separate) for the year ended 31 December 2016 and as on that date.
Financial Statements of ‘The Bank’ comprise those of EBL On-shore (main operation) and Off-shore Banking Unit (presented
separately) whereas consolidated Financial Statements comprise Financial Statements of ‘The Bank’ and those of its subsidiaries
[EBL Securities Ltd., EBL Investments Ltd., EBL Finance (HK) Ltd. and EBL Asset Management Ltd.] presented separately. Analyses
in this report, unless explicitly mentioned otherwise, are based on the financials of ‘The Bank’ not the consolidated financials.
Yours Sincerely,
Safiar Rahman, FCS

DMD & Company Secretary
Annual Report 2016 Eastern Bank Ltd. 7
SCOPE AND BOUNDARY OF INTEGRATED REPORT

EBL’s Integrated Annual Report aims to provide a balanced prioritized material topics and indicators relevant to them.
and comprehensive review on the financial and non-financial There are many issues that affect the business on a daily basis.
performance of the Bank and its subsidiaries. This is different We have highlighted those issues that have the potential to
from conventional annual report as it deals more with strategic impact our performance. In this case, all material matters
and forward looking issues, maps out how each decision in relating to the Bank have been identified and disclosed in this
terms of resource allocation, capital planning, business strategy, report.
stakeholder relationships, governance structure adds value to
the bank in the short, medium and long run. External Assurance
Scope and Boundary EBL has obtained external assurance on the following reports:
This Report covers the period from January 01 to December Topics Assurance Providers
31, 2016 focusing on our history, achievements, sustainability, Financial Statements Rahman Rahman Huq, Chartered
strategy, relationship with stakeholders, risk management, 2016 and Audit Accountants, a member firm of
corporate governance, external environment, financial Report thereon KPMG International
performance, segmental overview, senior management team
Corporate Hoda Vasi Chowdhury & Co,
and plans for the 2017 financial year and beyond.
Governance Chartered Accountants
Basis of Preparation and Presentation Moody’s ( An International rating
agency)
Integrated Report is presented based on Integrated Reporting Credit Rating
Credit Rating Information and
Checklist prescribed by the Institute of Chartered Accountants Services Limited (CRISL)
of Bangladesh (ICAB) in line with International Integrated
PCI DSS ( Payment World’s cyber security leader NCC
Reporting Council -IIRC’s Integrated Reporting Framework.
Card Industry Data group, UK
Consolidated financial statements of the Bank and its
Security Standard)
subsidiaries and the separate financial statements of the Bank
are prepared and presented in accordance with Bangladesh Responsibility for an Integrated Report
Accounting Standards (BAS), Bangladesh Financial Reporting
Standards (BFRS), Bank Companies Act 1991 (amended up to I take the responsibility to ensure the integrity of the disclosures
2013), Relevant Rules and Regulations issued by Bangladesh made in the integrated report and presented information should
Bank (BB), Companies Act 1994, Securities and Exchange Rules be read in conjunction with the audited financial statements.
1987 and other applicable laws and regulations. Moreover, The financial and non-financial information disclosed in the
corporate governance report has been prepared based on the integrated report has been assessed and reviewed as per the
guidelines issued by Bangladesh Bank as well as Bangladesh content of the integrated report and it reasonably addresses the
Securities and Exchange Commission (BSEC). And, the details material matters which impact the Bank and its subsidiaries
of sustainability issues have been disclosed in sustainability showcasing fair presentation of integrated performance.
report that sticks to the guidelines of Global Reporting Initiative
(GRI).
Materiality
In the integrated report, we have considered the requirements Ali Reza Iftekhar
and expectations of external and internal stakeholders and Managing Director & CEO
8 Annual Report 2016 Eastern Bank Ltd. PREAMBLE
DISCLAIMER
This Report contains consolidated and separate audited corporates. In addition to enforcing banks to lower fees
financial statements of the Bank (EBL) and its four subsidiaries. and provide rebate to good borrowers, BB may persuade or
Review of business and financials presented in the Directors’ restrict banks to further cut interest rates on deposits.
Report and Management Discussion & Analysis section is
g Opportunities to invest in Capital market increased:
based on audited financials as well as management information
Through exclusion of equity investment in subsidiaries
(mostly unaudited unless otherwise specified) of the Bank.
from Bank’s exposure in the capital market, BB has created
As a scheduled and listed Bank in Bangladesh, the Bank has to some space for banks with associated risks involved.
comply with relevant circulars and instructions issued by two
Energy crisis and weak infrastructure: Infrastructure
of its key regulators i.e. Bangladesh Bank (BB) and Bangladesh
g
bottlenecks, lack of adequate supply of energy to production

Securities and Exchange Commission (BSEC) while reporting
its annual audited financial statements and Annual Report/ facilities, rising cost of doing businesses may continue to
Integrated Report. The Bank follows applicable ‘Bangladesh hinder growth of manufacturing and industrial activities.
Financial Reporting Standards (BFRSs)’ while preparing and g Challenges in asset-liability management: Banking
reporting financial statements except in some cases where BB industry in Bangladesh has been burdened with excess
has case-specific instructions for banks to follow. Treatment liquidity for different reasons. Dearth of credit demand
of mark-to-market of govt. treasury securities under HFT from acceptable borrowers as well as lower yield on govt.
category, provision against quoted shares and mutual funds, securities may undermine profitability of the bank.
unclassified loans and contingent assets etc. are the major
areas where requirement of BFRSs and those of BB contradict.
g Rising liquidity and capital requirement under Basel III:
However, the bank follows instructions from Bangladesh Bank, Under Basel III regime, stringent liquidity standards may
being the prime regulator for banks, and makes adequate impact profitability of the banks while under Pillar II of
disclosures of the deviations (Please see Note 2.1 of financial Basel III (Supervisory Review Process) Banks may have to
statements). maintain more capital to cushion extended areas of risks.
Hence, this Integrated Report does not constitute an invitation g Capital market volatility: Although the capital market
to invest in EBL shares. Any decision taken in reliance of this exposure of the Bank never exceeds 3% of total assets,
information must be made at sole responsibility of the investors volatility of share price might cause earnings to decrease.
or prospective investors. g Directed lending: Regulators or govt. may direct banks
Business ‘outlook’ and management estimates and assumptions to take credit exposure to agricultural, renewable energy,
in recognizing certain financial transactions presented in eco-friendly projects or some other under-served sectors
different parts of this Report can be no assurance that actual at prescribed rates which may not produce reasonable risk-
outcomes will not differ materially from the estimates/ adjusted return.
projections. Some of the challenges that may cause projected g Climate change effect and natural calamity: Bangladesh is
outcomes differ from the actual ones can be put forth, which one of the most vulnerable countries to climate change effects
are not exhaustive as well: and natural disaster. Agriculture sector, which contributes
g Changes in macro-economic conditions: Under prevailing around 16 percent of GDP, is the most susceptible sector to
condition of political calmness and macro-economic such risk.
stability largely blessed by low oil prices, it is expected that g Risk of Fraud: Internal fraud and external financial
confidence in business environment will grow to accelerate crime are increasing in the industry due to weak
GDP growth. Then again, it’s an expectation about some
corporate governance, control weakness, and increasing
uncertain variables.
use of technology by criminals. EBL remains highly
g Changes in government and regulatory policy: To meet vigilant to prevent any type of surprises with heightened
up rising govt. budget, NBR may deepen or broaden new control measures, strong corporate governance and risk
avenues of tax and VAT mostly shouldered by banks and management practices.
VISION & MISSION
Vision
To become the most valuable brand in the financial
services in Bangladesh creating long-lasting value for
our stakeholders and above all for the community we
operate in by transforming the way we do business
and by delivering sustainable growth.
Mission
g We will deliver service excellence to all our
customers, both internal and external.
g We will ensure to maximize shareholders’ value.
g We will constantly challenge our systems,
procedures and training to maintain a cohesive
and professional team in order to achieve service
excellence.
g We will create an enabling environment and
embrace a team based culture where people will
excel.
10 Annual Report 2016 Eastern Bank Ltd. CORPORATE GOVERNANCE
VAL UES
Service Excellence g We passionately drive customer delight.

g We use customer satisfaction to accelerate growth.
g We believe in change to bring in timely solution.
Openness g We share business plan.

g We encourage two-way communications.
g We recognize achievements, celebrate results.
Trust g We care for each other.

g We share knowledge.
g We empower our people.
Commitment g We know our roadmap.

g We believe in continuous improvement.
g We do our task before we are told.
Integrity g We say what we believe in.

g We respect every relationship.
g We are against abuse of information power.
Responsible Corporate Citizen g We are tax-abiding citizen.

g We promote protection of the environment for our
progeny.
g We conform to all laws, rules, norms, sentiments
and values of the land.
STRATEGIC PRIORITY
g Maintaining a pool of motivated workforce

through equitable reward programs.
g Striking a fine balance between liquidity and
profitability through judicious ALM practices.
g Designing suitable products and services to meet
the client’s financial needs and aspirations as well
as to ensure adequate risk-adjusted return for the
bank.
g Pursuing a moderately aggressive asset growth
strategy without compromising asset quality.
g Making people more responsive to the growing
needs of our clients, regulators and the society at
large.
g Ensuring corporate governance in conformity
with laws and regulations and undertaking all our
activities honestly, responsibly and ethically.
g Devising suitable programs and action plans
to accelerate our recovery drive and cost
rationalization initiatives.
12 Annual Report 2016 Eastern Bank Ltd. ORGANIZATIONAL OVERVIEW
CORPORATE DIRECTORY
Name of the Company our customers through a network of 82 branches, 13 priority
centers, 4 student centers, 202 ATMs and 58 CDMs.
Eastern Bank Limited
Treasury
Legal Form
This business segment predominantly deals with managing cash
A public limited company incorporated in Bangladesh on flow and liquidity of the bank. It also deals with fixed income
August 08, 1992 to carry out all kinds of banking businesses securities, foreign exchange, currency trade, asset-liability
in and outside Bangladesh. Having taken over the businesses, management, fund transfer pricing etc., a complete package of
assets, liabilities and losses of erstwhile Bank of Credit & treasury solutions to both internal and external customers.
Commerce International (Overseas) Limited as per BCCI
Reconstruction Scheme 1992 of Bangladesh Bank, the bank Centralized Operations & Risk Management
commenced its operations on August 16, 1992. EBL follows centralized model of operations in processing
Composition of the Group EBL voluminous customer information, monitoring and assessing
credit risk, trade finance operations, cards operations to ensure
Eastern Bank Limited (Group) better control and compliance, service excellence and good
governance. Branch managers having no authority to take
Bank Subsidiaries (fully owned)
credit decision are expected to focus on sales and service.
Eastern Bank Limited EBL Securities Limited
(Stock Dealing & Brokerage) Board of Directors
Off-Shore Banking Unit EBL Investments Limited Chairman
(OBU), Bangladesh (Merchant Banking Operations)
M. Ghaziul Haque
Yangon Representative EBL Asset Management Limited
Office, Myanmar Directors (Other than chairman)
(Asset Management i.e. managing
mutual funds) Sl. Name Position
EBL Finance (HK) Limited
Mir Nasir Hossain
(First foreign subsidiary doing 1. Director
(Representing Mir Holdings Ltd.)
trade finance and off-shore 2. A. M. Shaukat Ali Director
banking business in Hong Kong) Md. Showkat Ali Chowdhury
3. Director
Our Core Business (Representing Namreen Enterprise Ltd.)
Salina Ali
Corporate Banking 4. Director
(Representing Borak Real Estate (Pvt.) Ltd.)
A wide array of products and customized solutions is offered to Anis Ahmed
corporate clients through 9 relationship units: 6 in Dhaka and 5. (Representing Aquamarine Director
3 in Chittagong. Our offerings include but not limited to term Distributions Ltd.)
lending, project financing, working capital financing, trade Independent
6. Meah Mohammed Abdur Rahim
financing, supply chain, cash management solutions, payroll Director
banking, syndication, advisory services etc. Mufakkharul Islam Khasru
7. Director
SME Banking (Representing Namreen Enterprise Ltd.)
Independent
SME Banking primarily targets SME clients to meet up their 8. Ormaan Rafay Nizam
Director
financial needs offering tailor-made banking solutions through Gazi Md. Shakhawat Hossain
57 SME Centers located across the country. It also facilitates 9. Director
(Representing Purnima Construction (Pvt.) Ltd.)
farmers and women entrepreneurs directly through women cell Managing
and agri unit. 10. Ali Reza Iftekhar
Director & CEO
Consumer Banking
Company Secretary
Consumer Banking offers a wide range of depository, loan and Safiar Rahman, FCS
card products to cater the demands of individual customers. It
simplifies daily banking needs and satisfies lifestyle aspirations
of consumers by extending suitable loan products. We serve
Committees of the Board of Directors Rating Long term Short term
Executive Committee Surveillance Rating
AA ST-2
2015
Status Surveillance Rating
Status with the AA ST-2
Sl. Name with the 2014
Bank Committee
Outlook Stable
1. Mir Nasir Hossain Director Chairman
Md. Showkat Ali Ownership Composition
2. Director Member
Chowdhury As on December 31, 2016, shareholding position of EBL by the
3. Salina Ali Director Member Directors, General Public & Financial Institutions is presented
Managing Director below:
4. Ali Reza Iftekhar Member
& CEO
Status
Secretary: Safiar Rahman, FCS
Composition Number of % of total
Audit Committee Shares shares
Directors 221,820,064 31.56%
Status with the Status with the General Public 407,869,621 58.03%
Sl. Name
Bank Committee Financial Institutions 73,167,067 10.41%
Meah Mohammed Independent Total 702,856,752 100.00%
1. Chairman
Abdur Rahim Director
Stock Exchange Listing
2. A.M. Shaukat Ali Director Member
Ordinary share of the Bank is listed with both Dhaka Stock
Mufakkharul Islam
3. Director Member Exchange Limited and Chittagong Stock Exchange Limited.
Khasru
Shares of EBL are categorized as ‘A’ in both the Stock Exchanges.
Ormaan Rafay Independent
4. Member
Nizam Director Capital (December 31, 2016)
Gazi Md. Shakhawat
5. Director Member BDT 12,000,000,000 (Face value per
Hossain Authorized Capital
Secretary: Safiar Rahman, FCS share: BDT 10)
BDT 7,028,567,520 (Face value per
Risk Management Committee Paid-up Capital
share: BDT 10)
Status with the Status with the Accounting Year-end
Sl. Name
Bank Committee December 31
1. Mir Nasir Hossain Director Chairman
Auditors
Meah Mohammed Independent Rahman Rahman Huq
2. Member
Abdur Rahim Director Chartered Accountants
Gazi Md. Shakhawat
3.
Hossain
Director Member Tax Consultant
Secretary: Safiar Rahman, FCS ACNABIN
Chartered Accountants
Credit Rating
Legal Advisors
Rating by Moody’s
Sadat, Sarwat & Associates and
For the first time in private sector banks in Bangladesh, EBL Sadia Rowshan Jahan
has been awarded Ba3 rating by world renowned ratings agency
Moody’s with a stable outlook. This rating is equivalent to that Registered & Head Office
of our sovereign rating (Ba3), also assigned by Moody’s. Jiban Bima Bhaban,
Rating by CRISL 10, Dilkusha Commercial Area,
Dhaka-1000, Bangladesh. Telephone: 880-2-9556360,
The Bank has completed its credit rating by Credit Rating Fax: 880-2-9562364, 9554610
Information and Services Limited (CRISL) based on the Swift: EBLDBDDH, Cable: EASTBANK
Financial Statements 2015 and was awarded ‘AA’ in the Long e-mail: info@ebl-bd.com
Term and ‘ST-2’ in the Short Term. Web: www.ebl.com.bd
EBL ORGANOGRAM
BOARD OF DIRECTORS
As the key agent to supervise and advise and also to

get involved in decisions of fundamental importance
to the bank, the board of directors works closely with
management in a cooperative relationship of trust
for the sustainable growth of the company. A major
responsibility of the board is to ensure the financial
statement of the company and all its subsidiaries
are prepared and presented in accordance with
Bangladesh Financial Reporting Standards, central
bank guidelines, and all other relevant regulations.
BOARD OF DIRECTORS
M. Ghaziul Haque Mir Nasir Hossain

Chairman Director
A respected business leader of the country, M. Ghaziul Haque is A leading entrepreneur of the country, Mir Nasir Hossain has a
the longest serving Board Member of Eastern Bank Limited. He diverse range of business interest in the fields of construction,
joined the Board in 1993 and is still serving the board with an real estate, telecom, ICT, ceramic tiles manufacturing, banking
interval of about five years between 2006 and 2011. Currently, and insurance. He excelled as a meritorious student in his
he is serving his second term as the Chairman of the Board of academic career and accomplished his post graduate degree in
Directors. His first term was 2000 to 2006. Accountancy from the University of Dhaka with flying colors.
He joined EBL Board of Directors in 1993.
He graduated from Chittagong Government College under
Dhaka University in 1955 and began his career with the reputed MIR TELECOM LTD., one of the business concerns under
British Company Bird & Co. Limited and rose to the position his dynamic leadership won the National Export Gold Trophy
of Managing Director in 1976 when it was changed to Birds 2012-13 & 2013-14 in Service Sector. He received the Trophy
Bangladesh Ltd. from the Hon’ble Prime Minister of the People’s Republic of
Bangladesh. Mir Nasir was also declared as CIP (Commercially
In 1980, he left the company to venture into business and
Important Person) by the Ministry of Industry for the years
partnered with Aquamarine Limited, Chittagong-based
2012-2013 as an industrialist.
Shipping Company. Later, he formed a joint venture company
Maersk Bangladesh Limited of Maersk Lines, Copenhagen, During the years from 2005 to 2007, he led the Federation of
Denmark. He served as the Chairman of the company until Bangladesh Chambers of Commerce and Industry (FBCCI),
1997 with commendable success. the apex trade body of the Country, as its President & served
the organization prudently with commitment and dedication.
Currently Chairman of MGH Group, he has diverse experience
He held many important positions in various regional business
in shipping and forwarding, import, export, marketing,
bodies including Senior Vice President of SAARC Chamber
banking, international business relations, collaborations and
of Commerce and Industry (SCCI) and Vice President of
joint ventures.
Confederation of Asia Pacific Chambers of Commerce and
Industry (CACCI).
Currently, he is President of the Faridpur Diabetic Association
and Chairman of the Governing Body of Faridpur Diabetic
Association Medical College.
He is also the Chairman of both the Executive Committee
(EC) and Risk Management Committee (RMC) of the Board of
Directors of EBL. He is actively engaged in various social works,
most notably life membership of Bangladesh Red Crescent
Society and supports a number of hospitals and orphanages.
A.M. Shaukat Ali Md. Showkat Ali Chowdhury

Director Director
AM Shaukat Ali did his graduation from the University of A renowned business leader of the country, Md. Showkat Ali
Dhaka in Civil Engineering in 1961 and post-graduation in Chowdhury is successfully running a business conglomerate
Japan in Construction Engineering in 1977. with diverse interest in ship breaking and recycling, tea
plantation and production, RMG industries, real estate, agency
From 1987 to 1993, he was director of various projects of
business and engineering services, container terminal and
World Bank and Asian Development Bank under the Ministry
handling, commercial banking, insurance, shares and securities.
of Health and Family Planning. He served as the Chairman of
Project Builders Limited from 1993 to 1999. He joined the board of EBL in 1993 and also a member of the
Executive Committee of the Board of Directors of the Bank.
He takes interest in a great deal of areas including banking and
healthcare, where he has significant contributions. He completed his graduation from the University of
Chittagong and is associated with many local and international
He is a fellow of the Institution of Engineers, Bangladesh (IEB)
organizations including a life member of SAARC Chamber of
and a member of executive Committee of Anjuman Mufidul
Commerce & Industry (SAARC CCI), Bhatiary Golf & Country
Islam. He is a PHF of Rotary Club of Buriganga Rotary Club,
Club Limited, Chittagong Press Club Limited, Chattagram Maa
Dhaka
O Shisu General Hospital, First Vice President of Chittagong
He joined the board of EBL in 1993 and is a member of the Metropolitan Chamber of Commerce & Industry (CMCCI)
Audit Committee of the Board of Directors of the Bank. and member of Chittagong Club Limited, Chittagong Senior’s
Club Limited, Chittagong Boat Club and Bangladesh Ship
He is currently the Chairman of Engineering Consultants &
Breakers and Recyclers Association.
Associates Limited and sponsor Director of Samorita Hospital
Limited. His involvement in many social activities is noteworthy and
widely acclaimed.
Salina Ali Anis Ahmed

Director Director
Salina Ali is the Chairperson of the Unique Group, a renowned Anis Ahmed is the founder and group CEO of MGH Group,
business conglomerate in Bangladesh, having business interest having its owned operations in 17 countries in South Asia,
in Real Estate, Ceramic Industry, Tourism, Manpower Export, Central Asia, Indo-Chine, Middle East and Africa respectively.
Banking Services and Human Resources Development. She is A 1992 start-up, MGH has business interest spanning from
also the Chairperson of Unique Hotel and Resorts Limited. Regional Supply Chain Logistics of Global Fast Fashion Brands,
Discount Retailers, Automotive Brands, TCM (Total Cargo
She is a member of the Executive Committee of the Board of
Management), Computer Reservation Systems, FM-Radio
Directors of Eastern Bank.
stations, Tea & Rubber Plantations, Food & Beverage Retail,
She did her Honors and Masters in Sociology from the and Commercial & Retail Banking.
University of Dhaka.
Suhana and Anis Ahmed Foundation has undertaken projects
She is involved in many social and philanthropic activities. related to detection of cancer at early stages to Complete
Remission (CR) to modernization as well as set up of schools for
children with Autism, Multiple Sclerosis, and Down Syndrome
to School Pocket Money Funds to numerous initiatives which
both Anis and his wife Suhana consider priorities of their lives.
MGH has gone international under his leadership by leveraging
the transactional goodwill with global brands like H&M,
Inditex (Zara), Carrefour, Metro, C&A, Renault, Nissan, GDS
Brand Travel Port, Low Cost Carrier Air Arabia, Spice Jet and
Turkish Airlines.
He holds a Bachelor degree in Finance from University of
Utah, Salt Lake City, Utah and an MBA from Arkansas State
University, USA.
Meah Mohammed Abdur Rahim Mufakkharul Islam Khasru

Independent Director Director
Meah Mohammed Abdur Rahim is the Managing Director Born in a respected family of Chittagong, Mufakkarul
of Ancient Steamship Company Limited and Hudig & Meah Islam Khasru did his Bachelor’s degree in Commerce from
(Bangladesh) Limited. Chittagong Commerce College and MBA from Institute of
Business Administration, Dhaka. Currently, he is the Managing
He is the Chairman of the Audit Committee and a member
Director of Finlay Properties Ltd., an affiliate of JF (Bangladesh)
of the Risk Management Committee (RMC) of the Board of
Ltd. Before taking up the current responsibilities at Finlay
Directors of the Bank.
Properties in 2010, he was CEO of SANMAR Properties Ltd., a
He did his diplomas in Banking and in Shipping from London leading business conglomerate with diversified business interest
School of Trade, AICS, B.Sc. in Economics and Finance Degree in property development, custom brokerage, stevedoring, and
from Queen Mary University of London, UK. commodity trading.
He is also Chairman of the Chittagong Club Limited. He is also a member of the Audit Committee of the Board of
Directors of Eastern Bank Ltd.
He has expertise in the areas of business studies, banking,
finance, and management. He is involved in many social He is an avid reader and has a strong impulse to travel and
activities and a widely travelled person. explore the world. A sport enthusiast, he enjoys socializing. As
an active member of a number of clubs including Chittagong
Club, Bhatiary Golf & Country Club, Chittagong Boat Club,
Bangladesh Diabetic Society, his contributions are noteworthy.
Ormaan Rafay Nizam Gazi Md. Shakhawat Hossain

Independent Director Director
Ormaan Rafay Nizam joined the Board of Eastern Bank Limited A noted business executive, Gazi Md. Shakhawat Hossain
in 2008 as Director from the Depositors and was subsequently wears multiple hats. He is the Managing Director of Purnima
appointed as an Independent Director in 2012. He is also a Construction (Pvt.) Limited and Director of Unique Hotel &
member of the Audit Committee of the Board of Directors of Resorts Limited, Bay Hill Hotel & Resorts Limited and General
Eastern Bank Ltd. Electric Company (BD) Limited.
He served as the Director of National Brokers Limited, the He is a member of both the Audit Committee and Risk
oldest Tea Broking Company in Bangladesh established in Management Committee of the Board of Directors of Eastern
1948 and a member of Chittagong Club and Bhatiary Golf & Bank.
Country Club. He is a cricket organizer at national level.
He obtained his M. Com in Accounting from the University of
In December 2015, he was appointed Honorary Consul of Dhaka. He has expertise in the areas of financial reporting and
France in Chittagong. management, insurance, and hospitality industry.
A sport enthusiast, he obtained his Bachelor’s degree in
Commerce from Chittagong University and completed higher
education from London School of Education (LSE). He has
consummate expertise in the areas of Business Studies, Finance
and Management.
Ali Reza Iftekhar

Managing Director & CEO
A visionary banker and a dynamic leader, Ali Reza Iftekhar is an

ardent promoter of sustainable development. As the Managing
Director and CEO of Eastern Bank Limited he has successfully
introduced international best practices and ethical banking and
transformed the organization into the most valuable financial
brand of the country. Under his leadership, the bank has achieved
many a laurel including the Best Bank in Bangladesh 2016 from
prestigious Euromoney magazine, Ba3 rating by Moody’s in
March 2016, the Best Retail Bank in Bangladesh awarded by
The Asian Banker for five consecutive years 2013 - 2017; the IFC
Global Award for the Best Partner for Working Capital Systemic
Solution; ICSB National Award 2014 for Corporate Governance
Excellence; the Best Financial Institution 2010 at the DHL-Daily
Star Bangladesh Business Award.
He was the chairman of Association of Bankers, Bangladesh
(ABB), apex body for banking professionals of the country, for
the term of 2014–15.
A 1982 graduate from the University of Dhaka in Marketing, his
specialization in risk management, corporate banking, operations
and retail made him one of the leading bankers of the country.
To keep him updated with the current management thoughts,
he attended Harvard Business School Program on Leadership
in Financial Organizations in 2012, participated in the Strategic
Leadership Program at University of Oxford, UK in 2013, and
took part in Executive Program in Corporate Governance and
Strategic Management at Haas School of Business, University of
California, Berkeley in 2014. In 2015, he has participated in the
Value Creation in Banking and Strategic Management Program
at INSEAD Business School, France.
MANAGEMENT COMMITTEES
MANCOM
Standing from left to right Sitting from left to right
Hassan O. Rashid Md. Khurshed Alam

Additional Managing Director SEVP & Head of SAM
Mehdi Zaman Omar F. Khandaker

EVP & Head of Treasury EVP & Head of Information Technology
S. M. Akhtaruzzaman Chowdhury Safiar Rahman

SEVP & Head of Internal Control & Compliance DMD & Company Secretary
Monjurul Alam
SVP & Head of Human Resources
Standing from left to right Sitting from left to right
Habibur Rahman Ahmed Shaheen

EVP & Area Head, Corporate Banking, Chittagong DMD & Head of Corporate Banking
Masudul Hoque Sardar Akhtar Kamal Talukder

SVP & Head of Finance DMD-Operations
Nazeem A. Choudhury Ali Reza Iftekhar

SEVP & Head of Consumer Banking Managing Director & CEO
Expanded Management Team (EMT)

Sl No. Name Designation Status in EMT
1 Mehbub Benazir EVP & Head of SME Banking Chairman
2 Mohammad Musa EVP & Head of Consumer Credit Administration Member Secretary
3 Tareq Refat Ullah Khan EVP & Unit Head, Corporate Banking, Dhaka Member
4 Faisal Rahman EVP & Head of Structured Finance, Corporate Banking Member
5 Usman Rashed Muyeen EVP & Head of CRM Member
6 Mahiuddin Ahmed EVP & Head of Business Process Re-engineering Member
7 Syed Sazzad Haider Chowdhury EVP & Head of Operations Member
8 Hemanta Theotonius Gomes EVP & Head of CAD Member
9 Iftekhar Uddin Chowdhury EVP & Branch Area Head, Chittagong Member
10 Maj Md. Abdus Salam, psc, (Retd) SVP & Head of Administration & Security Member
11 Ziaul Karim SVP & Head of Communication Member
12 Md. Mokaddas SVP & Head of Trade Operations Member
13 Md. Obaidul Islam SVP & Head of Financial Institutions, Corporate Banking Member
14 Ashraf- Uz-Zaman SVP & Head of Monitoring, ICCD Member
15 Sheikh Mohammed Faruk Hossain SVP & Head of Consumer Risk Member
16 Md. Rezaul Karim SVP & Head of Service Management, IT Member
17 Md. Rezaul Islam SVP & Head of Audit, ICCD Member
18 Md. Asaduzzaman SVP & Deputy Head of SAM, Corporate & SME-M Member
19 Md. Abdul Awal VP & Head of Compliance, ICCD Member
20 S. K. M. Shariful Alam VP & Head of Core Banking Application, IT Member
21 Oli Ahad Chowdhury VP & Branch Area Head, Dhaka Member
22 Mohammed Moinul Islam VP & Head of Small Business, SME Member
23 Md. Safiqul Islam Zahid FAVP & Head, Financial Operations & Control Member
24 Riyadh Ferdous FAVP & Head of Brand Member
25 Rishad Hossain FAVP & Head, Employment & Strategy Member
Asset Liability Committee (ALCO)
Sl No. Name Designation Status in ALCO
1 Ali Reza Iftekhar Managing Director & CEO Chairman
2 Hassan O. Rashid Additional Managing Director Member
3 Ahmed Shaheen DMD & Head of Corporate Banking Member
4 Nazeem A. Choudhury SEVP & Head of Consumer Banking Member
5 Md. Abdul Hakim EVP & Head of RMD Member
6 Mehbub Benazir EVP & Head of SME Banking Member
7 Mehdi Zaman EVP & Head of Treasury Member Secretary
8 Masudul Hoque Sardar SVP & Head of Finance Member
9 Md. Maskur Reza VP & Head of Business Information System Member
10 Md. Nurul Islam Limon Manager, ALM & FTP Head/Manager of
ALM Desk
Bank Risk Management Committee (BRMC)
Sl No. Name Designation Status in BRMC
1 Usman Rashed Muyeen EVP & Head of CRM (Acting Chief Risk Officer) Chairman
3 S.M. Akhtaruzzaman Chwodhury SEVP & Head of ICCD Member
5 Md. Abdul Hakim EVP & Head of RMD Member Secretary
6 Omar F. Khandaker EVP & Head of Information Technology Member
7 Mahiuddin Ahmed EVP & Head of Business Process Re-engineering Member
8 Mehdi Zaman EVP & Head of Treasury Member
9 Syed Sazzad Haider Chowdhury EVP & Head of Operations Member
10 Hemanta Theotonius Gomes EVP & Head of Credit Administration Member
12 Ashraf- Uz-Zaman SVP & Head of Monitoring Member
Purchase Committee (PC)
Status in
Sl No. Name Designation
Committee
1 Akhtar Kamal Talukder DMD - Operations Member
2 Omar F. Khandaker EVP & Head of IT Member
3 Maj Md. Abdus Salam, psc, (Retd) SVP & Head of Administration & Security Convenor
Credit Risk Management Committee
Status in
Committee
3 Md. Khurshed Alam SEVP & Head of SAM Member
5 Md. Abdul Hakim EVP & Head of RMD Member
Green Banking Cell
Status in
Committee
1 Hassan O. Rashid Additional Managing Director Chairman
2 Usman Rashed Muyeen EVP & Head of CRM (Acting Chief Risk Officer) Member
7 Monjurul Alam SVP & Head of Human Resources Member
8 Saiful Islam FAVP & Sr. Manager, RMD Member Secretary
BASEL Unit*
Sl No. Name Designation Status in Unit
2 S.M. Akhtaruzzaman Chowdhury SEVP & Head of ICCD Member
5 Masudul Hoque Sardar SVP & Head of Finance Member Secretary
*It has a Working Team consisting four members.
Cost Olympic Committee
Status in
SL NO Name Designation
Committee
1 Safiar Rahman DMD & Company Secretary Chairman
4 Syed Sazzad Haider Chowdhury EVP & Head of Operations Member Secretary
7 Monjurul Alam SVP & Head of Human Resources Member
Central Compliance Unit (CCU)

Sl No. Name Designation Status in Unit
CAMLCO and
1 S. M. Akhtaruzzaman Chowdhury SEVP & Head of Internal Control & Compliance
Head of CCU
2 Ashraf- Uz-Zaman SVP and Head of Monitoring, ICCD Deputy CAMLCO
3 Md. Abdul Awal VP and Head of Compliance, ICCD Deputy CAMLCO
4 Md. Mokaddas SVP and Head of Trade Operations Member
5 Shuvra Kanti Saha SVP and Area Head Trade Operations, Chittagong Member
6 Md. Zahid Hossain VP and Area Head, Service Delivery Member
7 Md. Enayet Karim Chowdhury VP and Head of Off-Shore Banking Operations Member
8 S. K. M. Shariful Alam VP & Head of Core Banking Application, IT Member
9 M. Mostafiduzzaman VP & Head of Liability, SME Banking Member
10 Md. Moshiul Haque FAVP & Acting Head of Business Risk Management Member
Integrity Committee
Status in
SL NO Name Designation
Committee
1 Hassan O. Rashid Additional Managing Director Chairman
2 Akhtar Kamal Talukder DMD-Operations Member
3 Safiar Rahman DMD & Company Secretary Member
Member & Focal
4 Nazeem A. Choudhury SEVP & Head of Consumer Banking
Point
7 Rishad Hossain FAVP & Head, Employment & Strategy Member
CODE OF CONDUCT AND ETHICAL GUIDELINES

At EBL we believe in consistency in corporate governance practices and to ensure that we have an effective and efficient monitoring
system in place. We have established sophisticated processes and structures detailed in our Code of Conduct and Ethical Guidelines
for a responsible and values driven management and control. Our Code of Conduct and Ethical Guidelines reflect our commitment
to international standards and best practices, including:
Compliance of Laws: All our employees are to follow and comply with the laws of the land and internal rules and
regulations of the bank.
Integrity of Records: All our employees are expected to maintain books and records with integrity and ensure
accuracy and timeliness of all transactions. They should shore up the privacy of the customers’ affairs. Then as well,
employees must not divulge the bank’s plans, methods, and activities, considered by the employer to be proprietary
and classified ‘confidential’. Moreover, employees are not expected to disclose such information without proper
authorization.
Misappropriation of Assets: No employee shall convert any funds and properties which are not legitimately theirs
to their own use and benefit, nor deliberately assist another person in such exploitation.
Conflict of Interest: Employees must not use their position in the bank for personal emolument or to obtain
benefits for themselves or members of their families or friends. Employees who are members of different school
boards, society, and recreational clubs should be aware of conflicts of interest and should declare any such conflict.
Speculation in Stocks: Employees and their dependents should not speculate/trade in stocks, shares, securities or
commodities of any description nor connected with the formation or management of a joint-stock company.
Honesty and Integrity: Our employees are expected to act honestly and with integrity at all times. They should act
uprightly and equitably when dealing with the public and other employees of the bank.
Acceptance of Gift: Our employees are highly discouraged to accept gifts, benefits (cash or kind) or facilities from
customers or persons having business interest with the bank. If an employee has to receive any such thing for the
sake of mutually beneficial relationship, he or she must disclose it with his/her line manager.
32 Annual Report 2016 Eastern Bank Ltd. BUSINESS MODEL
BUSINESS MODEL AND VALUE CREATION

EBL is an established brand in the financial industry of the country. Over a period of quarter century, the bank has been growing
with the people, economy and society at large catering financial needs of versatile group of economic players. Apart from using
centralized banking operations model which is proven to be more efficient than branch-based banking, the bank has established
itself as a corporate bank with growing focus on retail and SME businesses. Having placed strong emphasis on good governance,
effective control, compliance and risk management, innovative financial solutions and service excellence, the bank has been quite
consistent in creating value for its stakeholders. Creating stronger bondage on the basis of mutually beneficial relationship with
customers, agility and ability to sense and respond to changing business needs and service excellence (the true differentiator) have
been the dominant forces of our business model. The Diagram/Chart presented below demonstrates business model of EBL in
brief:
Inputs
Key Businesses
Corporate
Consumer
SME
Treasury
Our Communication Channels

Branches
ATMs
Internet Banking
Mobile Banking
SMS Banking
Call Centers
Electronic Cards
Support Services
Administration
Risk Management Division (RMD)
Special Assets Management Division (SAMD)
Operations
Off-Shore Banking
Brand and Communication
Risk and Capital Corporate

Management Governance
Outcomes
Capital Market Operations
International Operations
EBL Subsidiaries
Bills Pay Machines
Priority Centers
SME Centers
Outputs
Foreign Key Products
Correspondents and Services
(See Page No-
SKY Banking 39-40)
POS Machines
Internal Control and Compliance (ICC)
Information Technology (IT)
Human Resources (HR)
Finance and Accounts (F&A)
Credit Risk Management (CRM)
Credit Administration (CAD)
Work
Environment
A snapshot of value created for the stakeholders

STAKEHOLDER ENGAGEMENT
Stakeholders Key Issues Mode of Communication Frequency
Quality service Relationship Managers As required
Privacy and Information Mails, SMS, Newsletter As required
security
Dispute Resolution Direct Customer feedback On a regular
basis
Product Information Website Continuous
Customers
Affordability and Different channels- Branches, Continuous
convenience Call Centre, Priority Centre,
ATM Booth,Internet Banking,
Skybanking and others
Relationship with Mails, meet up, arranging different On a regular
customers occasions for customers basis
Sustainable Growth Company Website Continuous
Financial Performance Annual Reports, Interim Financial Quarterly, Semi-
Statements annually,Yearly
Corporate Governance Annual Report Annually
Shareholders/ Risk Management Annual Report Annually
Investors Business expansion plan EGM As required
Relationship Meetings As Necessary
Company Information 1. Website of EBL 1. On a regular
2. Annual Report basis
2. Annually
Worklife Balance Mails, Cultural programs As necessary
Diversity and Career Different Engagement Programs As required
Progression
Performance Evaluation Letters , Arrnaging programs for Semi annually
Employees and Rewards outstanding performers
Recruitment and Exams, Interview, Training As required
Retention programs, financial and non-
financial benefits
HR information HR Links (Intranet) Continuous
Compliance with Report Submission Within the
Regulations Reporting date
Awareness and Knowledge Training and workshops As required
Govt. and Communication Telephone conversations, emails, on a regular
Regulatory visits basis
Bodies
Financial Inclusion Interact through branches, SMS, Mail As required
Ethics and code of EBL Website Continuous
conduct
Society and Sustainability Initiatives 1. EBL Website, Newsletters 1. Continuous
Environment 2. Annual Report 2. Annually
Community Investment 1. EBL Website, Newsletters 1. Continuous
2. Annual Report 2. Annually
Relationship with Meetings, Telephone conversation, On a regular
suppliers Periodic visits basis
Performance of a contract Meetings As required
Suppliers Networking Regular commnunication, Periodic Continuous
visits
Future Business Meetings, On site Visits As required
Opportunities
EXTERNAL ENVIRONMENT
PESTEL Analysis
Key Areas Influencing Factors Our approach to deal with the factors
To ensure smooth flow of business, political stability is a
prerequisite. Political influence may very well undermine asset
quality, governance practices and sustainability in the banking
sector. A perceived sense of security among commoners helps
Political stability, grow entrepreneurship and creativity. Govt. regulations have direct
Security of common and profound impact on businesses too.
Political
people, Govt.
Although political stability prevailed all through the year, rise
regulations
of militancy created a sense of panic and discomfort. However,
nothing stood as a major obstacle to EBL. The bank has the right
mix of agility and strategic pursuits to cope up with any unforeseen
issues.
All the major macro-economic indicators of the country have
been stable with healthy FX reserve (USD 32 billion apprx.). Our
GDP Growth, Forex business has continued to reap good benefits from this stability.
Economic Reserve, Interest Though banking sector is burdened with excess liquidity and high
rate, Inflation NPL, EBL still managed to do business well keeping NPL below
3%. The bank will continue to focus on maintaining quality growth
of assets and take right strategic move benefitting our stakeholders.
Though Bangladesh is moving forward in terms of standard of
living, lifestyle and per capita income of the people, a large section
of population still remains out of formal financial system. EBL
Standard of Living, being one of the leading banks in the industry always provides
Social Per Capita Income, diverse products and quality services to its customers through
Quality Service conventional and alternate delivery channels. During 2016, EBL
spent more than BDT 30 million on various social causes in
different areas such as education, entrepreneurship, sports, women
empowerment, art and culture as part of social responsibilities.
Banking sector has changed significantly because of the
advancement of technology. It has made people’s life smoother
when doing regular banking activity. However, growing threat to
cyber security and digital fraud can invite sudden havoc. Keeping
Technological that in mind, EBL brings new technology with resilient security
advancement, to provide better and safer customer service and outperform
Technological
Investment in competition. Moreover, EBL continuously reviews and upgrades
Technology systems to cater the needs of different stakeholders. Our recent
certification on PCI DSS from world’s cybersecurity leader NCC
Group, UK has given us another weapon to secure our customers
information.
Physical environment has a profound impact on the sustainability
Green Banking, of businesses. EBL always discourages industries those are
Impact on threatening our habitat when providing loans and always
Environmental environment emphasizes practicing green banking in terms of usage of
through business electricity, recycling and less use of papers, online bill payment,
deals internet banking and so on.
Banking sector is one of the most regulated ones in the country.
Regulatory bodies try to impose more rules and regulations
Regulatory asking for additional disclosures to ensure transparency and good
Legal requirements, Level governance in the banking sector. In response to this, EBL always
of communication puts highest priority on following rules and regulations. However,
to resolve anything conflicting EBL prefers to communicate and
clarify with regulatory bodies.
Competitive Market Analysis
Industry Level of
Influencing Factors Our approach to deal with the factors
Forces Measurement
Medium to Intense competition. Too many financiers chasing too few eligible
High borrowers. Understandably, customers are
Customer loyalty
getting price (rate) sensitive than loyal. Facing
fading fast.
Degree of this growing challenges, EBL has been focusing
rivalries on offering innovative and value-added services
to the customers to make customer bondage
stronger. Our ability to reduce fund cost in
order to offer competitive rates has also been
enhanced.
Medium to Supply of Banks being heavily dependent on quality
Low technology (core human resources and technology face medium
banking software, level of challenges. However, challenges remain
Suppliers’ hardware etc) and low in procuring essential goods and services
Power quality HR. as the no of suppliers are adequate. Having a
better brand image, EBL has been in a position
Supply of tangible
to attract quality HR, use better technology and
goods and services.
procure goods and services at competitive rates.
Medium to Available sources of Customers always expect better rates and
High loans & deposits efficient services. Because of good number of
banks offering homogenous types of products
Switching cost
Customers’ and services, customers have more options to
getting lower.
Power switch to get better rates and services. EBL does
have seasoned experiences to serve its clientele
better than most of the peers in terms of
competitive rates as well as innovative solutions.
Low to More licenses Though it requires huge amount of capital to
Medium permitted to open open up a new bank, still some new banks were
new Bank & NBFI. recently added in the list which definitely push
Threat up the competition. EBL, in response, brings
of new some changes in its strategy to outperform
entrants competition.
Medium to Mostly homogenous Since most of the banks offer similar types of
High products and products and services, competitors need to find
services offered. out unique ways to attract customers. Apart
Threat of from offering competitive rates, EBL always
substitute brings customized solution and value added
Products services for its customers.
MATERIALITY
Material issues are those that have a strong influence on our banking business; therefore our shareholders and depositors
stakeholders’ assessments and related decisions on the Bank’s rely on us with their capital and funding. They have confidence
long-term sustainability and the ability to deliver expected in us that we can manage our balance sheet aptly with adequate
returns. Effective management of material issues is crucial for capital and meet up obligations with sufficient liquidity.
achieving our strategic objectives. Trust is a cornerstone of our
Material Issues Influencing Factors EBL’s Approach

Demand for credit EBL has strong capital base and liquidity
in excess of the regulatory minimums to
Non-performing loans
absorb economic downturns. We have
Economic Cost of fund strong focus on cost minimization and
Conditions dedicated team for investment.
Investment appetite
Market volatility
Changes in laws and regulations EBL is one of the most compliant Bank in
terms of regulatory rules and regulations.
Regulatory
requirements
Market reputation Client-focused service helps us understand
our clients’ requirements and fill up the
Customer base
demand accordingly. Moreover, diligent
Quality Service investment advice equips our clients to
create and grow their wealth.
To attract and retain the best talents EBL always tries to make sure to be an
exciting place to work at and continue
Quality outcome
to invest heavily in our people to train,
Recruiting, Good work environment nurture and develop them within our caring
motivating and culture. We reward our people in line with
retaining the right best practices and industry norms.
people
Long–term sustainability EBL’s activities are strongly aligned with its
strategic goals and values. We step forward
Creating value for the stakeholders
every stage focusing on our core strengths,
EBL’s strategies, Way of doing business bringing new stuffs in our products and
policies, systems, services.
goals and values
Risk management We have a good culture and track record
of sound risk management and cautious
Profitability
growth in profitability and good corporate
Increasing Corporate Governance governance which ensure to increase
shareholders’ value shareholders’ value in near future.
for the long run
OUR PRODUCTS AND SERVICES

CONSUMER BANKING
• EBL VISA Platinum • EBL NFCD (Non Resident Foreign
• EBL Mastercard Titanium Currency Deposit)
• EBL Diners Club International • EBL Shonchoy
Deposit Products • EBL VISA Gold • EBL Paribar
Savings Account • EBL VISA Classic Remittances
• EBL Classic Savings Remitted fund can be disbursed
• EBL Power Savings EBL Corporate Credit Card
Revolving loan facilities for corporate through EBL branches, designated
• EBL Max Saver mobile outlets of Robi and Banglalink
• EBL Premium Savings houses to manage Company’s local and
global travel & entertainment expenses and smart remit card.
• EBL 50+ Savings
• EBL Smart Women’s Savings EBL Debit Card NRB Loan products
• EBL RFCD (Resident Foreign • EBL VISA Signature • Personal Secured Loan (FAST Loan)
Currency Deposit) • EBL Mastercard Titanium • Personal Secured Credit (FAST Cash)
Current Account • EBL VISA Platinum Investment
• EBL Current Account • EBL VISA Classic • Wage Earners Development Bond (WEDB)
• EBL Current Plus • EBL VISA Business Debit • US Dollar Investment Bond (USDIB)
• EBL VISA Global Debit • US Dollar Premium Bond (USDPB)
DPS Account
• EBL Confidence EBL Pre-paid Card Consumer Propositions
• EBL Millionaire Scheme • EBL Mastercard Aqua Payroll Products
• EBL VISA Lifestyle • EBL Executive Account
EBL Fixed Deposit • EBL Visa Payroll Card
• EBL Payroll
• EBL Repeat
• EBL Hajj Card Student Banking Products
• EBL 50+ FD
• EBL ACCA Card • EBL Junior
• Fixed Deposit
• Extra Value Fixed Deposit Co-branded card • EBL Campus
Robi Co-Branded Platinum • EBL Child Future Plan
Loan Products • EBL Student File
Personal Loan Facilities Priority Banking Service
• EBL Executive Loan • EBL Zip (Zero % Installment Plan) EBL Priority offers a wide range of
• EBL Women’s Loan • EBL HIPO (Half Interest Pay Order) attractive propositions and personalized
• EBL Assure • EBL Want2Buy services, adding value to the premium
• Fast Cash • EBL Debit EMI customer base of the bank.
• Fast Loan • EBL CAS (Customer Authentication Service)
• EBL Auto Loan • EBL Acquiring Digital Banking Services
• EBL Home Loan • Payment Solution
NRB Products & Services • SKYBANKING
• EBL Education Finance pack Matribhumi is a tailor-made product • Internet Banking
Card Products and service propositions for the NRBs • EBL 365
EBL Consumer Credit Card which includes: • EBL Dropbox
• EBL VISA Signature NRB Deposits products • EBL Contact Center with Phone Banking facility
• EBL MasterCard World • EBL Global • EBL SMS Banking & SMS Alert
• JET Airways EBL Platinum Service
TREASURY
• Commercial Paper investors & Institutions
• Foreign Exchange Swap • Sub-ordinate Bond
• Treasury Bill to Inter-Bank Foreign Exchange & Corporate
Money Market Fixed Income & Investment Sales
• Call Money • T-Bond to Inter-Bank • Spot in Major Currency Pair
• Term Money • Treasury Bonds • Forward Contract
• Re-purchase Agreement (Repo) • T-Bond for foreign individual • Interest Rate Swap (IRS)
• Reverse Repo
CORPORATE BANKING
Non Funded Facilities- Offshore Financing
Letter of Credit • Import Loan
• Sight Letter of Credit • Demand Loan
Cash Management Solutions • Usance/ Deferred Letter of Credit • Bill Discounting/Financing
• Nationwide Collection Services • Structured Letter of Credit • Term loan
(NCS) Guarantee • Guarantee
• Payment Transfer Services (PTS) • Performance Guarantee
• EBL Cheq Pro • Bid Bond Structured Financing
• Advance Payment Guarantee • Local and Foreign Currency
• Cash Pick-up & Delivery Service
• Retention Bond Syndicated Term Financing
• Mobile Financial Service (MFS)
• Security Bond • Syndicated Working Capital
• EBL Connect
Financing
• Commercial Payments and Solutions
• Multilateral Financing
(CPS) Long term Financing • Trustee and Agency Services
• Utility Bills Collection • Regular Term Loan
• Preference Shares
• EBL SPEED • Refinance Term Loan
• Export Credit Agency (ECA) Backed
• Investment Promotion & Financing
Working Capital Solutions Financing
Facility (IPFF)
Funded Facilities- • Bond
• Long Term Financing Facility (LTFF)
• Import Loan • Commercial Paper
• Japan International Cooperation
• Demand Loan Agency (JICA)
• Manufacturers Demand Loan • Asian Development Bank (ADB)
• Overdraft
• Time Loan
• Packing Credit
• Local Documentary Bill Purchase
• Foreign Documentary Bill Purchase
• EDF Loan
SME BANKING
Agri Business Loan Products- • Letter of Credit
• EBL KrishiRin • Loan against Trust Receipt
• EBL Projukti • Letter of Guarantee
Small Segment Loan Products • Usance Letter of Credit
• EBL Asha Medium Segment Loan • Acceptance
• EBL Agrim Products • Local Bill Purchased Documentary
• EBL Mukti • EBL Banijyo • Foreign Bill Purchased Documentary
• EBL Uddog • Cash Credit
• EBL Uddom SME Deposit Products
• EBL Unnoti Other Conventional Mid Segment • EBL Subidha
• EBL Nobodoy Loan Products- • EBL Equity Builder
• EBL Udoy • EBL Invoice Factoring • SME Double Return
• EBL Utpadon • Secured Overdraft • EBL Repeat SME
• EBL Utkorsho • Overdraft • EBL Alo
• EBL E Cash/Loan • Demand Loan • Business Debit Card
• EBL Uddipon • Import Loan
• Time Loan
STEWA RDSHIP
Prudent banking is a result of the board’s

constructive engagement with management headed
by managing director and CEO and their forward
looking initiatives towards sustainability. They are
also at the driving seat of the company. The reports
of the Chairman, Directors, and CEO are therefore, a
significant instrument which reflect their perception
and understanding of the market and the risks it
contains and present an in-depth survey of the bank’s
performance, internal control process, corporate
governance framework, CSR initiatives and last but
not the least statement of the bank’s contribution to
the exchequer.
42 Annual Report 2016 Eastern Bank Ltd. STEWARDSHIP
CHAIRMAN’S
STATEMENT
Bangladesh economy has grown by more than 7% during fiscal year (FY)
2016 riding mainly on stable macro-economic and socio-political conditions.
However, the spillover effects of this spectacular growth performance and
stable macro-economy on the banking sector have largely been mixed.
Private sector credit growth (around 16%) has been broadly in line with
that envisaged in monetary policy statement of Bangladesh Bank (BB).
However, growing competition among banks, deteriorating asset quality,
weak governance, narrowing spread, cyber security threat have continued to
put pressure on profitability of the banks. Despite numerous challenges, we
have managed to grow our net profit (profit after tax) by 19.61% during 2016
and closed the year with an NPL ratio of 2.69%.
Dear respected shareholders, the growth momentum of the country unless it is harshly dealt
with. Among notable challenges Bangladesh is facing now are:
My heartiest welcome to the 25th Annual General Meeting declining remittances, rising default loans, weak institutional
of EBL. Along with this annual report a small effort has been capacity to implement development projects, quality of
made to share a few things that drove our business and have spending govt. budget etc. Fortunately, our economy has the
had an impact on financial performance during 2016. tenacity and resilience to withstand these kinds of challenges
Bangladesh Economy: A journey towards and move forward with a vision to earn middle income country
status by 2021.
sustainable growth
With a sovereign rating Ba3 and ‘stable’ outlook by Moody’s Banking Industry: Facing New Challenges
for consecutive years, Bangladesh economy remains on a Political stability, improved energy situation, rising public
stable growth path. Steady socio-political and macro-economic expenditure in mega infrastructure projects and single digit
environment, enhanced business confidence, improved energy lending rate --- all these helped entrepreneurs to regain business
situation, sustained growth in export-import and vibrant public confidence, which is reflected around 16% private sector credit
sector investment played an important role for 7% plus GDP growth. On the other hand, rise of non-performing loans,
growth. Average inflation came down to 5.5% in 2016 from deteriorating solvency (capital adequacy ratio), growing cyber
6.20% in 2015 supported by favorable domestic production and security concern, weak governance, narrowing spread have
decreased global commodity prices. Despite shock exit of UK continued to undermine sustainability of banking businesses.
from EU, the trend of external trade (import-export) remains The banking industry NPL rose to 9.23% at year-end 2016 from
positive. The capital market has bounced back during the year 8.79% in 2015. Of the total NPL, eight state banks accounted for
to help restore investors’ confidence. However, rising militant 59%. Some of the banks (mostly state-owned) are suffering from
attack has become a cause of concern which could dampen huge capital shortfall which is occasionally met by fresh capital
injection by the govt. In addition, comparing to the previous Good Governance: A Recipe for Sustainable
year, weighted average rate of deposits and loans declined to Development
5.22% from 6.34% and 9.93% from 11.18% respectively which
led to shrink the spread and profitability of the banks. Good governance is key to long term success. To maximize
shareholders value, nothing works better than good governance.
Performance of EBL: Marked Improvement in 2016 For us maintaining highest standard of ethics, compliance and
The bank registered a healthy performance in terms of all the key values has always been a top priority. The bank has established
financial parameters. Net Interest Income (NII) experienced a its own set of internal benchmarks, processes and structures
spectacular growth of 56% riding on sharp decline of cost of to adopt and adapt best practices in governance. The Board
funds. Our efficiency in banking operations has improved. Cost of Directors is committed to maintain highest standards
to Income ratio decreased to 43.99% in 2016 which was 47.41% of corporate governance within a framework of regulatory
in the previous year. Operating profit grew by 23.32% and Profit compliance and adherence to the highest ethical standards.
after tax increased by 19.61% to reach BDT 2,656 million. ROA The bank recognizes that growth must be inclusive to become
and ROE, two key profitability ratio, have also improved to sustainable. As a good corporate we are committed to the
1.33% and 12.94% respectively while the basic earnings per causes of humanity and society at large. We have a collaboration
share increased to BDT 3.78 from BDT 3.16 (restated). agreement with Dhaka University Alumni Association (DUAA)
One of the key indicators of good health NPL ratio declined under which we have been awarding scholarships to meritorious
to 2.69% which was 3.27% in 2015. Our prudent capital and disadvantaged students since 2007. During the year we
management practice continues to help us sustaining a capital contributed BDT 31.94 million, a lion share through ‘Prime
to risk weighted assets ratio (CRAR) which is well over the Minister’s Relief & Welfare Fund’, to CSR in different areas
required minimum as per Basel III guidelines. At year-end such as education, health care, disaster relief, sports, women
2016, the CRAR was 15.10% compared to 14.24% in 2015. empowerment, art and culture what we care about most.
Human Capital: Our employees, our brand We also won the coveted Euromoney award for the best
bank in Bangladesh which recognizes how EBL thrived in a
We encourage hiring right attitude, develop skill set, nurture challenging environment and demonstrated excellence with a
talents and retain best people through competitive package and commitment to innovation. In a commendable continuity, we
suitable reward programs. To develop strong human capital have been awarded with ICSB National Award for Corporate
base, we have always identified the individual need, sharpen Governance for last 3 years . This recognition is a testimony to
the skill through learning and development programs to ensure our unwavering adherence to good governance practices. And,
greater productivity. To cope up with changing HR needs, the these awards and recognitions will definitely ignite our passion
human resource policy of the bank is reviewed from time to to perform in order to take our bank to newer height.
time. To maintain a professional, cohesive and motivated team,
a variety of reward programs are in place. A fresh pool of talents In gratitude
are on-boarded each year to make sure future leaders are ready My sincere thanks and gratitude to team EBL, which is well-
to fill up the key positions of the bank. led by Ali Reza Iftekhar. The level of dedication, hard work
and passion they have shown is simply unparalleled. I convey
Recognitions: Those fill us with pride my sincere appreciation to my colleagues in the Board, their
I am delighted to share that for the first time any of the local wealth of knowledge and foresight helped us overcome multiple
commercial banks has been rated by Moody’s, one of top three challenges and showed us the right direction. We are grateful
rating agencies of the world. EBL showed the courage to go for to regulators especially Bangladesh Bank for their constant
an international rating and was assigned Ba3 rating with ‘stable’ support and prudent guidance all the way.
outlook. This is equivalent to Ba3 sovereign country rating for
Bangladesh. We got PCIDSS (Payment Card Industry Data
Security Standard) certification from world’s renowned cyber
security leader NCC Group of UK which provides assurance
that all the information and transactions of debit and credit M. Ghaziul Haque
cards are secure. Chairman of the Board of Directors
THE RECOGNITIONS MADE US PROUD
NOTE: On April 26, 2016, the press release was corrected as follows: In the third sentence, the phrase “Local and foreign currency deposit
ratings of Ba3/NP” was changed to “Local currency deposit ratings of Ba3/NP; Foreign currency deposit ratings of B1/NP”. In the “Ratings
Rationale” section, the following phrase was added to the first paragraph: “However, its foreign currency deposit rating remains positioned
at B1 because Bangladesh’s foreign currency deposit ceiling is capped at that level”. In the “summary of Eastern Bank’s first-time ratings”
section, the phrase “- Ba3 local currency and foreign currency long-term deposit ratings; outlook stable “ was changed to “Ba3 local currency
long-term deposit ratings; outlook stable, B1 foreign currency long-term deposit ratings; outlook stable”. Revised release follows.
Singapore, March 21, 2016 -- Moody’s Investors Service has assigned the following first-time ratings to the Bangladesh-based Eastern Bank
Limited:
• Global local and foreign currency issuer ratings of Ba3/NP;
• Local currency deposit ratings of Ba3/NP; Foreign currency deposit ratings of B1/NP
• A standalone baseline credit assessment (BCA) of b1; and
• An adjusted BCA of b1
The ratings outlook is stable. Moody’s has also assigned a Counterparty Risk Assessment (CR Assessment) of Ba3(cr)/NP(cr) to the bank.
RATINGS RATIONALE
The Ba3 long-term ratings assigned to Eastern Bank incorporate its BCA of b1 and a one notch uplift to reflect Moody’s assumption of
moderate systemic support to the bank in case of stress. However, its foreign currency deposit rating remains positioned at B1 because
Bangladesh’s foreign currency deposit ceiling is capped at that level
Eastern Bank is a corporate-focused bank, with around a 2%-3% share of total loans in the domestic market. Its key credit strengths comprise
its profitability profile, strong balance sheet buffers and record of good asset quality. On the other hand, its liquidity profile is weak.
The bank’s asset quality has been consistently better than its peers, as measured by gross non-performing loans (NPLs). However, as is the
case with other banks in the system, Eastern Bank has seen a pickup in its NPL ratio since 2011.
Moody’s notes that in the case of Eastern Bank, its rise in NPLs has consistently registered at lower levels than its peers. Importantly, asset
quality is stabilizing, with a better performance during the nine months to 30 September 2015 when compared to the same period in 2014.
WE are now
PCI DSS Compliant
At EBL we want you to leave your worries behind and enjoy life while
we take care of your security concerns of credit or debit cards.
Your loved brand EBL is now Payment Card Industry Data Security
Standard (PCI DSS) Compliant. The compliance certificate has been
awarded to EBL by world’s cybersecurity leader NCC Group, UK.
We assure our valued cardholders that EBL is always vigilant to

ensure the security of your card transactions.
REVIEW OF THE MANAGING

DIRECTOR & CEO
We consider our people as the core brand of the company. Our
philosophy regarding human capital is ‘people first.’ The inherent spirit
of the philosophy is to inspire our people to serve our customers.
Consequently, people engagement with brand is a key component of
EBL culture.
The big picture Our bank remains strong — and getting stronger
The year under review was shaped by a series of unprecedented Last year was a year of bouncing back for our company. We
events. In 2016 Britain voted to leave the European Union, managed through the rough ride in competition while never
Donald Trump became president of America, and the world losing sight of the reason we are here to serve our clients, our
witnessed an intense refugee crisis. Volatile global and gulf society and of course, to earn a fair profit for our shareholders.
region politics and troubled European economy pose threat Despite numerous challenges we have produced impressive
to export and remittance-two major drivers of Bangladesh results in 2016. Our judicious ALM practice and effective
economy. Following the debt crisis in Europe and depreciation balance sheet management helped us grow the core banking
of some major currencies against USD, the pace of recovery income (net interest income) by 55.98% while overall loans
of the EU economies - the primary destination of Bangladesh grew by 16.78% with a balanced share among corporate, retail
exports - will be critical somewhat in 2017 as well. and SME. Our efficiency in cost management has also been
Despite internal and external challenges, Bangladesh economy reflected in the reduction of cost to income ratio to 43.99%
continued to show its resilience due mostly to indomitable from around 47.41%. Operating profit increased by 23.32%
enterprising spirit of its people. Stable macro economy and while profit after tax reached to BDT 2,656 million with 19.61%
political stability helped us achieve 7% plus GDP growth in FY growth. As a result, Return on Asset (RoA) and Return on
2016 with a below 6% inflation rate. Rising public expenditure Equity (RoE) have increased to 1.33% and 12.94% respectively
in certain mega infrastructure projects, single digit lending (2015: RoA 1.23%; RoE 10.95%). NPL, both in absolute and
rate, increased access to finance and improvement in working relative terms, decreased in 2016 and stood at 2.69% (31-12-
conditions at garment factories have made businesses confident 15: 3.27%) at year-end 2016 because of stringent evaluation and
to take up new challenges and provide impetus for export monitoring of lending portfolio and strong collection drive.
earnings. Our position has also improved in the most important solvency
ratio. Our Capital to Risk Weighted Assets Ratio (CRAR) has
Banking sector of the country gone up to 15.10% (2015: 14.24%) on solo basis with a strong
CET 1 ratio (10.80%).
But the macro-economic stability of the country belies the
health of the banking sector. Around 10% industry NPL We protect our company and those we serve
clearly doesn’t go with the underlying strength inherent in our
Effective corporate governance in line with local and global
economy that drives 6% plus GDP growth for decades quite
standards is of paramount importance to Eastern Bank.
consistently. Unhealthy competition (too many banks chasing
We give utmost importance to key parameters of corporate
too few eligible borrowers), poor risk management and weak
governance such as Board system and its independence,
governance appear to be responsible for deteriorating health
function of board sub-committees, fair financial reporting,
of the financial sector. Banks have been more liquid than
disclosure and compliance, and consistency of shareholders
expected. Reciprocally, profitability has been moderate mainly
value enhancement. All our banking activities center on these
because of narrowing spread and increased provisioning against
key principles of good governance. Our continuous effort to
rising NPL. Growing threats to cyber security has added more
adopt and adapt to international best practices in corporate
vulnerability to the industry.
governance has been recognized by Institute of Chartered We consider our people as the core brand of the company.
Secretaries of Bangladesh (ICSB). EBL has won accolades in Our philosophy regarding human capital is ‘people first.’ The
all three editions of the corporate governance excellence award inherent spirit of the philosophy is to inspire our people to serve
with distinction. our customers. Consequently, people engagement with brand
is a key component of EBL culture. We organize annually a host
Our relentless effort to upgrade and update on every account of programs to instill a sense of camaraderie and team spirit. We
of standardization is reflected in our Operations department’s have annual photography contest, musical talent hunt, and art
recent ISO 9001: 2015 certification. competition for the children of our employees. To motivate and
The world is fast changing, so does the banking landscape. inspire our people and learn leadership excellence, we have a
Changes bring challenges. One such major challenge of the ‘Leadership Lecture Series’ program where we invite luminaries
contemporary world is security of banking transactions. As of the society to talk about the challenges in their life and how
a responsible corporate, we put safety and security of our they have overcome those hurdles. We also organize sessions,
customer card on top of our safety issues. EBL last year achieved on a regular basis, to promote speak-up policy, invite experts
PCI DSS certification from NCC Group, a UK-based security to train our people on effective communication, team building,
company to set global standards in bank-card safety. and customer service.
We always support our communities and people In closing

I am honored to work at EBL along with its outstanding people.
As a corporate citizen, Eastern Bank has been working for a What they have accomplished during the difficult circumstances
better future since 1992 to support the drivers of prosperity for has been extraordinary. It was a remarkable year in our journey
individuals, the society, and the economy. The UN describes to excellence: we were awarded long-term Ba3 rating with stable
education as key to social and economic development, and outlook by the world renowned ratings agency Moody’s, got
has put educational progress at the center of its Sustainable Euromoney’s the Best Bank in Bangladesh accolade, and won
Development Goals (SDGs). In emerging economies, access the Best Retail Bank in Bangladesh crown for four consecutive
to education has the potential to raise those at the bottom of years from the Asian Banker magazine. I am indebted to the
the economic pyramid out of poverty. We at EBL focus on board of directors of the bank for their forward looking views
tertiary level of education because we believe that it is where and guidance. Our regulators, especially, Bangladesh Bank has
youth are prepared for entering the job market. To reach out always been forthcoming in their prudential guidance. I am
to meritorious and disadvantaged students of the University of grateful to them. And finally, I look forward to another success
Dhaka, we began a fruitful partnership with Dhaka University story in 2017.
Alumni Association (DUAA) in 2007. We are offering a
minimum of four scholarships to all 74 departments of
University of Dhaka helping the meritorious but disadvantaged
young people to pursue higher education and help them grow
as skilled workforce. Ali Reza Iftekhar
Managing Director & CEO
DIRECTORS’ REPORT 2016

The Board of Directors welcomes you all to the 25th Annual Export showed a strong growth of 9.7% in FY2016(3.4% in
General Meeting (AGM) of the Bank and presents before FY 2015) crossing the annual growth target of 7.3% set for FY
you the Annual Report along with the Audited Financial 2016. Traditional markets including the EU, USA and Canada
Statements for the year 2016. A review of business and financial contributed 7% out of this 9.7% growth in the total export. Both
performance and the forces (global as well as local business, the ready made garment (RMG) and non-RMG exports met
economic and financial condition) affecting these have been respective growth targets and attained growth rates of 10.2%
briefly pointed out. and 7.5% respectively. After registering slow growth during
the first five months, import growth rebounded in the last two
Global economy and its outlook quarters reaching 4.3% in the overall FY 2016.
Global economy passed another difficult year due to stagnant Inflow of remittance experienced a major setback in FY2016
global trade, subdued investment and heightened policy and recorded a negative growth of 2.5% while it was 7.6%
uncertainty. Subdued outlook for advanced economies positive growth in FY 2015. The overall balance of payments
following UK vote for Brexit in June 16 and weaker-than- position was comfortable in FY 2016 with overall surplus of
expected growth in the US played an important role to sluggish USD 5.04 billion partly due to narrowing trade deficit. Trade
performance of global economy. The condition of emerging deficit declined to USD 6.27 billion in FY 2016 from USD 6.97
and developing economies remains quite varied: growth in billion in FY 2015 driven by strong export growth but subdued
China was a bit stronger than expected supported by continued growth in import payments.
policy stimulus; overall activity was weaker than expected in
some Latin American countries currently in recession, such The high inflow of foreign currencies from the financial
as Argentina and Brazil, as well as in Turkey, which faced a account and lack of payment demand resulted in a continuing
sharp reduction in tourism revenues. Activity in Russia was rise in the foreign exchange reserves which stood at USD 30.1
slightly better than expected, in part reflecting firmer oil prices. billion in FY 2016 which is equivalent to eight months’ imports
Many economies in the Middle East and Sub-Saharan Africa, of Bangladesh.
however, continued to face challenging conditions. India’s Banking industry in 2016
economy continued to recover strongly, benefiting from a large
improvement in the terms of trade, effective policy actions, and The banking industry in Bangladesh is highly fragmented into
stronger external buffers, which have helped boost sentiment. state-owned commercial banks (SCBs) and local and foreign
private commercial banks (PCBs) with a marked difference
As per IMF projections, the global growth is expected to be in profitability and other financial soundness indicators
3.4% in 2017 and 1.9% for advanced economies. Growth (governance, asset quality, capital adequacy etc.). Too many
in the US economy is projected to be 2.3% with the highest banks chasing too few eligible borrowers resulting free fall of
likelihood among a wide range of possible scenarios. Growth interest rates and rising NPL have been the major challenges
projections for 2017 also have been made upward for Germany, facing the industry. Weak governance, poor risk management
Japan, Spain, and the UK, mostly on account of a stronger than and control measures in certain banks (dominantly SCBs)
expected performance during the later part of 2016. The growth have continued to cast a shadow on the overall health and
in China is projected to be 6.5% on expectations of continued sustainability of this sectors. Private sector credit growth has
policy support while in India, the growth forecast (7.2%) is declined to 15% by the end of November 2016 from 16.8%
trimmed primarily due to rattle effects induced by recent of June 2016 despite falling interest rates on lending (average
‘currency shock’. In the Middle East, growth in Saudi Arabia is lending rate was 9.9% in November 2016). Industry NPL ratio
expected to be weaker as oil production is cut back in line with closed at 9.23% at year-end 2016 from 10.34% at 30 September
the recent OPEC agreement, while civil strife continues to take 2016.
a heavy toll on a number of other countries. Geopolitical risks
and a range of other noneconomic factors continue to weigh on The Capital to risk weighted assets ratio (CRAR) stood at
the global economic outlook in various regions - civil war and 10.3% in September 2016, same as the level of June 2016. On
domestic conflicts in parts of the Middle East and Africa, the the other hand, monthly interest rate spread for all banks
tragic plight of refugees and migrants in neighboring countries continued to stay below 5% during September 2016. The spread
and in Europe and the rising acts of terror worldwide. has been decreasing since June 2016; it was 4.85% in June 2016
and 4.76% in September 2016. Monthly weighted average call
Bangladesh economy: A brief review money rate decreased marginally from 3.70% in June 2016 to
3.64% in September 2016.
Bangladesh economy has been enduring well with a 7% plus
GDP growth in FY 2016 (6.5% in FY 2015) despite slowing Deposit growth slowed to 13.5% at the end of September 2016
private investment and weak remittances. Both the industrial against 14.1% at the end of June 2016. Similarly, the growth
and service sectors registered higher growth (11.1% and 6.3% of loans and advances decreased from 15.4% to 14.5% during
respectively)in FY 2016 compared to those of FY 2015, while the same period. The advance-deposit ratio (ADR) stood at
manufacturing sector registered the highest growth (11.7%) 73.9% at the end of September 2016 and remained far below
since FY 1996. the maximum regulatory ceiling. The liquidity position in
the banking sector as a whole was comfortable at the end of Eastern Bank: financial performance highlights
September 2016; leading to a further easing of money market
Despite heightened challenges, EBL managed its portfolio
conditions.
efficiently closing the year 2016 with an NPL of 2.69% (3.27%
Economy and business outlook 2017 in 2015) which is way lower than that of industry average
(9.23%). The prime focus during the year has been improving
Bangladesh Bank’s (BB) second half yearly (H2, FY 2017) asset quality, enhancing service excellence, recovering classified
monetary policy stance has been formulated to accommodate and written off loans and rationalizing costs. A brief review of
GDP growth target of 7.2% and to fix a monetary growth path financial performances are as follows:
aiming at average inflation below 5.8%. This would require
a monetary program that limits reserve money growth to • Net interest income (NII) which contributed 48% of total
14% and broad money growth to 15.5% by June 2017. This is operating income increased 56% in 2016 compared to last
consistent with domestic credit growth of 16.4% and private year(interest income increased by 2% and interest expense
sector credit growth of 16.5% by June 2017. decreased by 18%).
Several indicators point to robust economic activity in the first • Non-interest income which contributed rest 52%
half of FY 2017 amid macroeconomic and political stability and decreased by 7% as both income from investment as well
as commission, exchange and brokerage decreased by 7% in
strong domestic demand. Private sector credit growth of 15-
2016.
16% is at a three-year high, with strong demand coming from
trade, construction, and small and medium enterprise (SME) • Due to lower growth of operating expense (7%) and higher
sector, which helps productivity and job creation. Medium and growth of operating income (16%), operating profit of
large-scale manufacturing industry also grew robustly. Export the Bank increased by 23% and reached at BDT 6,418.21
growth moderated but has held up relatively well (4.4 percent in million in 2016.
December 2016), compared to peers and is expected to pick up. • Total provision increased by 13% in 2016 compared to
Looking ahead, the government’s reform initiatives to improve last year (specific provision decreased by 6%, general
the business climate and ease infrastructure bottlenecks, provision increased by 58% for increased volume of loans
including by developing special economic zones, should help and contingent liabilities, provision for equity investments
crowd in both private domestic and foreign direct investments and other assets decreased by 44% mainly due to increase of
that can create more jobs, raise productivity, and potential market price of quoted securities and sale of securities fully
growth. provided for).
In line with the government’s SDG priorities of an inclusive, • Provision for tax increased by 46% mainly due to increase
environmentally sustainable growth, BB is promoting of profit before tax (PBT) by BDT 982.96 million or 29%
inclusive, green financing (targeting SME, agriculture and compared to last year.
green initiatives). BB has taken up a consultative initiative of
formulating Guidance Notes on the do’s and don’ts of socially • Finally Bank’s profit after tax (PAT) increased by BDT
435.57 million or 20% in 2016 compared to 2015.
responsible financing to better foster social cohesion, with
output initiatives that promote entrepreneurship, create more Following table summarizes comparative financial performance
and better jobs, and protect environment. of EBL both as a Group and as the Bank:
(Figures are in million BDT)
Group Bank % Change % Change
Particulars
2016 2015 2016 2015 (Group) (Bank)
Total operating income 11,688.27 10,154.56 11,459.02 9,895.70 15% 16%
Total operating expense 5,172.34 4,800.52 5,040.81 4,691.21 8% 7%
Operating profit (Profit before provision and tax) 6,515.94 5,354.04 6,418.21 5,204.49 22% 23%
Provision for loans and contingent assets:
Specific provision 1,906.89 2,020.59 1,902.68 2,020.59 -6% -6%
General provision 384.89 243.41 384.89 243.41 58% 58%
Provision for equity investments and other assets -292.88 -457.43 -268.87 -476.06 -36% -44%
Total provisions 1,998.89 1,806.56 2,018.70 1,787.93 11% 13%
Profit before tax for the year 4,517.05 3,547.47 4,399.51 3,416.56 27% 29%
Tax provision for the year 1,800.71 1,264.87 1,743.03 1,195.64 42% 46%
Profit after tax (PAT) 2,716.34 2,282.61 2,656.49 2,220.92 19% 20%
Earnings per share (EPS) 3.86 3.25 3.78 3.16 19% 20%
ROA and ROE have increased in 2016 due to increase in PAT by million to statutory reserve, current year profit available for
20%. Cost to income ratio has decreased due to higher growth distribution stands at BDT 1,750.79 million and accumulated
of operating income than that of operating expense. The Capital profit available for distribution stands at BDT 1,785.85 million.
to risk weighted assets ratio (CRAR) has increased to 15.10% in The Board of Directors, therefore, recommended 25% dividend
2016 from 14.24% in 2015. Following table presents some of the (20% cash and 5% stock) amounting BDT 1,757.14 million for
key financial ratios: the year 2016.
Bank Capital adequacy status under Basel III

Particulars
2016 2015 The Bank issued a 7-year Non-convertible Subordinated
Return on average equity 12.94% 10.95% Bond of BDT 2,500 million (a recognized component of tier-
Return on average assets 1.33% 1.23% ii capital) in the first quarter of 2015 to enhance capital base.
Cost to income ratio 43.99% 47.41% Bank’s Capital to Risk Weighted Assets Ratio (CRAR) remains
Capital to Risk Weighted Assets Ratio 15.10% 14.24% consistently within the comfort zone during 2016 (13% plus)
NPL ratio 2.69% 3.27% against the minimun requirement of 10% during four quarters
EPS (BDT) 3.78 3.16 of 2016. Bank’s strength in capital base is also signified in the
Price to book value ratio 99.08% 85.28% fact that the ratio of Tier 1 capital to RWA was always hovering
above 9% throughout the year. For details please see Market
Appropriation of profit Discipline (Basel III) section of this annual report.
Profit after tax (PAT) of the Bank stands at BDT 2,656.49 million History of raising capital
during the year including a deferred tax income component of
BDT 30.14 million out of which BDT 25.79 million arises on As on the reporting date (31-12-2016), the bank had paid
specific provision made against Bad/Loss loans and cannot be up capital of BDT 7,028,567,520 of which 81.60% was raised
distributed as dividend as per BRPD Circular No. 11 dated 12 through stock dividend. The history of raising paid up capital to
December 2011 of BB. After a mandatory transfer of BDT 879.90 BDT 7,028.57 million as on year-end 2016 is presented below:
Cumulative Paid up
AGM Date Particulars No. of Shares* Volume in Taka
Capital in Taka
9-Dec-93 As per MOA & AOA 60,000,000 600,000,000 600,000,000
5-Aug-01 20% Bonus Share 12,000,000 120,000,000 720,000,000
8-Dec-03 15% Bonus Share 10,800,000 108,000,000 828,000,000
12-Jun-07 25% Bonus Share 20,700,000 207,000,000 1,035,000,000
25-May-08 34% Bonus Share 35,190,000 351,900,000 1,386,900,000
25-May-08 Right Share 2:1 at Par 69,345,000 693,450,000 2,080,350,000
28-Apr-09 20% Bonus Share 41,607,000 416,070,000 2,496,420,000
30-Mar-10 17% Bonus Share 42,439,140 424,391,400 2,920,811,400
30-Mar-11 55% Bonus Share 160,644,627 1,606,446,270 4,527,257,670
29-Mar-12 35% Bonus Share 158,454,018 1,584,540,180 6,111,797,850
19-May-16 15% Bonus Share 91,676,967 916,769,670 7,028,567,520
27-Apr-17 5% Bonus Share (Proposed) 35,142,837 351,428,370 7,379,995,890
*Face value per share of BDT 10 has been considered in all the cases to conform to comparability.
Variance between quarterly and annual financial performance

To gauge the said variance, seven key financial information of each quarter of 2016 (Q1 to Q4) was analyzed using Quarterly
Average (QA) as the base. Following table presents stand-alone quarterly information with average of four quarters.
(Figures are in Million BDT)
Particulars Q1, 2016 Q2, 2016 Q3, 2016 Q4, 2016 QA*, 2016 Annual 2016
Net Interest Income 1,219 1,399 1,422 1,490 1,382 5,529
Non-Interest Income 1,990 1,852 1,055 1,032 1,482 5,930
Operating Income 3,209 3,251 2,477 2,522 2,865 11,459
Operating Expense 1,191 1,310 1,244 1,296 1,260 5,041
Operating Profit 2,018 1,941 1,233 1,226 1,605 6,418
Profit Before Tax 1,460 1,249 918 773 1,100 4,400
Profit After Tax 838 756 430 632 664 2,656
*Quarterly Average
Setting 25% variance as threshold for being significant, there • The Audit Committee of the Board reviews internal control
was no significant variance in interest income during 2016. findings identified by the Internal Audit of the bank,
However, non-interest income significantly increased in Q1 Inspection Team of Bangladesh Bank, External Auditors and
mainly due to booking hefty amount of capital gain from sale of Management, and evaluates the adequacy and effectiveness
govt. treasury securities under HFT. On the other hand, there of the risk management and internal control systems.
was no significant variance in operating expense over the four • The Board of Directors hold meetings at suitable intervals
quarters. Therefore, operating profit increased in Q1 and Q2 by with senior management, internal auditors, external
25.74% and 21% respectively than that of QA. Simultaneously, auditors and the Audit Committee for evaluating the
Profit before Tax (PBT) increased by 32.73% and 13.56% in Q1 effectiveness of the internal control system.
and Q2 respectively than that of QA. Although, PBT was affected
by higher provision in Q3 and Q4, Profit after Tax (PAT) in Q1 • Internal audit reports are submitted to the Audit Committee
without management filtering and the internal auditors
and Q2 increased by 26.23% and 13.80% respectively than QA.
have direct access to the Audit Committee as and when
Status of asset quality required.
As on 31 December 2016, NPL ratio of the banking industry • Self-Assessment of Anti-Fraud Internal Controls is
stood at 9.23% which was 8.79% one year back. The NPL ratio carried out on quarterly basis and is sent to Bangladesh
of EBL was 2.69% at the end of 2016 which was 3.27% at end of Bank according to DOS Circular Letter No. 17, dated 07
2015. The status of unclassified and classified loan of the Bank November 2012 issued by BB.
is as follows: Risk management
(Figures are in million BDT) The Risk Management Committee (RMC) of the Board reviews
Particulars 31-12-2016 31-12-2015 % Change and monitors the overall risk management system of the Bank
and updates to the Board from time to time. Risk management
Unclassified loans: 147,988 125,963 17.49%
functions are subject to continuous scrutiny of ICCD and
Standard (Including 144,482 122,213 18.22%
supervision of RMD to ensure appropriateness and integrity of
staff loan)
the risk management mechanism.
Special Mention 3,506 3,750 -6.51%
Accounts (SMA) The risk management system of EBL has been described in
Classified loans: 4,096 4,263 -3.92% “Risk Management Report” section of this annual report. Also
Sub-standard (SS) 731 317 130.94% the major areas focused by RMC in 2016 have been presented
Doubtful (DF) 281 278 0.99% in “Report of the Risk Management Committee of the Board”
section of this annual report.
Bad/loss (BL) 3,084 3,669 -15.93%
Total loans 152,084 130,226 16.78% Financial reporting
NPL % 2.69% 3.27%
• Proper books of account as required by law have been
Subsidiaries businesses maintained by EBL.
In pursuance of an inorganic growth route and to open up • Appropriate accounting policies have been consistently
diversified earnings stream, EBL established or acquired four applied in preparation of the financial statements.
subsidiaries, all of them fully owned, till the reporting date • Accounting estimates and underlying assumptions are
i.e. 31 December 2016. A brief review of subsidiaries business made on reasonable ground and prudent judgment and are
during 2016 has been presented in a separate section titled reviewed on an ongoing basis.
‘Review of EBL Subsidiaries’.
• The Financial Statements (FS) of the Bank are prepared in
Internal control system accordance with applicable Bangladesh Financial Reporting
Standards (BFRSs) and relevant circulars/instructions
EBL has a sound system of internal controls to safeguard issued by Bangladesh Bank and any departure therefrom
shareholders’ investments and the Bank’s assets. The Board has been adequately disclosed.
retains the ultimate responsibility for its operations, though
has delegated to the Audit Committee for the review of the • Being responsible for preparation and fair presentation of
adequacy and effectiveness of the system of internal controls. the FS, the management of the Bank asserts that the FS
The key functionalities that have been established in reviewing prepared by the management as at and for the year ended
adequacy and integrity of the system of internal controls are as 31 December 2016 present fairly, in all material respects, its
follows: state of affairs, the results of its operations, cash flows and
changes in equity.
• Various committees have been formed to assist the Board
• There is no significant doubt upon the Bank’s ability to
in ensuring that the Bank’s operations are in line with the
continue as a going concern. EBL has neither intention
corporate objectives, policies, strategies, instructions and
nor the need to liquidate or curtail materially the scale of
the annual budget that have been approved.
its operations. Hence, the financial statements of the Bank
have been prepared on the assumption that EBL is a going • Donated BDT 22.5 Million to Prime Minister’s Relief &
concern and will continue in operation for the foreseeable Welfare Fund.
future.
• Donated 25,000 pieces (costing BDT 7.12 Million) of
Compliance with corporate governance guidelines blankets to Prime Minister’s Relief & Welfare Fund for
distribution among cold-hit people.
As a responsible corporate citizen EBL duly complied with
the provisions of corporate governance guidelines issued • Donated BDT 2.5 Million to ‘Law & Order Coordination
by Bangladesh Bank (BB) and Bangladesh Securities and Committee’ for CCTV surveillance Project at Gulshan,
Exchange Commission (BSEC). The compliance status of EBL Banani and Baridhara Residential Areas by DMP.
on the said guidelines has been presented in the section of • Donated BDT 2.5 Million to ICC Bangladesh.
‘Corporate Governance Report’. Also, Hoda Vasi Chowdhury &
Co., Chartered Accountants, has certified the compliance status • To fulfill a continued commitment for ten years effective
of EBL on the BSEC’s corporate governance guidelines during from March 2009, EBL contributed BDT 4.8 lac to Prime
2016 which is mentioned in page 97 of this annual report. Minister’s Relief & Welfare Fund every year to one family of
a martyred army officer killed in BDR carnage in February
Major awards and recognitions 2009.
Rating by Moody’s: International rating agency Moody’s Contribution to national exchequer
assigned EBL with Ba3 long-term rating which is the sovereign
rating of Bangladesh. EBL is the first Bangladeshi Company EBL regularly pays corporate tax on time, sometime even before
that has been rated by Moody’s. it falls due as required and asked by the tax authority. We also
deposit excise duty, withheld tax and VAT to govt. exchequer on
PCI DSS compliant bank: EBL has achieved PCI DSS time deducted from employees’ salary as well as on bills from
certification for implementing global information security third parties including vendors. During the calendar year 2016
standard from world’s cyber security leader NCC Group, UK. we contributed BDT 2,939.50 million to national exchequer
Best retail bank in Bangladesh: EBL adjudged the ‘Best Retail as tax, VAT and excise duty. We paid advance corporate tax
Bank in Bangladesh’ award for 2016 consecutively for the fourth of BDT 626.08 million while deposited withheld tax of BDT
time by The Asian Banker. 1,638.65 million, VAT of BDT 421.05 million and Excise Duty
of BDT 253.73 million during the year 2016.
Euromoney best bank in Bangladesh: EBL won Euromoney
Best Bank in Bangladesh Award at the gala ceremony of On behalf of the Board of Directors
Euromoney Awards for Excellence 2016 held in Hong Kong.
National award for corporate governance excellence: EBL
won the second prize in ‘ICSB National Award for Corporate
Governance Excellence 2015’ in the ‘Banking Companies’
category by the Institute of Chartered Secretaries of Bangladesh
(ICSB). M. Ghaziul Haque
Chairman of the Board of Directors
CSR activities
Being a socially responsible corporate, EBL continued to be
Dhaka, 20 March 2017
engaged in a number of CSR activities throughout the year,
including a number of donations towards charitable causes.
STAKEHOLDERS’ INFORMATION
As a good corporate, our goal is to be responsive

to the expectations of our stakeholders and to
safeguard our business from potential future shocks
such as economic or climate change. We believe in
constructive engagement and sharing information
of the bank in a transparent way with stakeholders
within and outside the bank. It helps us to decide on
the issues to prioritize throughout the year.
54 Annual Report 2016 Eastern Bank Ltd. STAKEHOLDERS’ INFORMATION
FINANCIAL HIGHLIGHTS
BDT in Million
Group Bank
Particulars
2016 2015 Change % 2016 2015 Change %
Performance During the Year
Net interest income 5,607 3,683 52.26% 5,529 3,545 55.98%
Non interest income 6,081 6,472 -6.04% 5,930 6,351 -6.63%
Operating income 11,688 10,155 15.10% 11,459 9,896 15.80%
Operating profit 6,516 5,354 21.70% 6,418 5,204 23.32%
Profit after tax 2,716 2,283 19.00% 2,656 2,221 19.61%
Year End Financial Position

Loans and advances 156,371 134,449 16.30% 152,084 130,226 16.78%
Investment 22,940 23,902 -4.03% 21,449 23,398 -8.33%
Deposits 140,205 127,906 9.62% 140,284 127,990 9.61%
Shareholders' equity 20,832 20,707 0.60% 20,572 20,496 0.37%
Total asset 212,377 191,091 11.14% 211,185 189,563 11.41%
Information Per Ordinary Share

Earmings per share (BDT) Not restated 3.86 3.73 3.61% 3.78 3.63 4.01%
Dividend (%) 25% 35% 0.00% 25% 35% 0.00%
Price earning ratio (times) Not restated 7.50 7.66 -2.04% 7.67 7.87 -2.51%
Net asset value per share (BDT) Not restated 29.64 33.88 -12.52% 29.27 33.54 -12.72%
Market price per share (BDT) 29.00 28.60 1.40% 29.00 28.60 1.40%
Ratios (%)
Capital to RWA ratio (CRAR) (as per Basel III) 14.96% 13.92% 7.43% 15.10% 14.24% 6.05%
Non performing loan 2.76% 3.26% -15.50% 2.69% 3.27% -17.73%
Cost to income ratio 44.25% 47.27% -6.39% 43.99% 47.41% -7.21%
FIVE-YEAR PROGRESSION OF EBL (BANK ONLY)

BDT in Million
Balance Sheet Metrics 31-Dec-16 31-Dec-15 31-Dec-14 31-Dec-13 31-Dec-12
Authorised capital 12,000 12,000 12,000 12,000 12,000
Paid up capital 7,029 6,112 6,112 6,112 6,112
Shareholders' equity 20,572 20,496 20,087 18,450 17,109
Loans and advances 152,084 130,226 118,291 102,910 96,720
Deposits 140,284 127,990 116,792 117,102 91,781
Borrowing 39,061 30,543 26,021 14,080 31,158
Credit to deposit ratio (Gross) 108.41% 101.75% 101.28% 87.88% 105.38%
Credit to deposit ratio - Gross (excluding OBU) 92.54% 87.99% 91.48% 85.57% 95.36%
Statutory liquidity ratio (SLR) 14.81% 16.71% 22.23% 29.88% 22.93%
Cash reserve ratio (CRR) 6.70% 6.42% 7.27% 6.10% 5.98%
Liabilities to shareholders' equity (times) 9.27 8.25 7.57 7.56 7.60
Investment 21,449 23,398 24,655 25,904 21,655
Fixed assets 5,940 5,943 7,087 6,897 5,970
Interest bearing assets 183,761 163,993 146,689 133,057 119,334
Total assets 211,185 189,563 172,124 157,882 147,148
Income Statement Metrics 2016 2015 2014 2013 2012
Net interest income 5,529 3,545 4,009 4,892 4,814
Non-interest income 5,930 6,351 5,980 4,491 3,849
Investment income 3,315 3,576 3,343 2,071 1,495
Commission, exchange, brokerage & Other income 2,614 2,774 2,637 2,420 2,354
Operating income 11,459 9,896 9,989 9,382 8,663
Operating expense 5,041 4,691 4,214 3,594 3,199
Operating profit 6,418 5,204 5,775 5,788 5,464
BDT in Million
Income Statement Metrics 2016 2015 2014 2013 2012

Provision for loans, investment and other assets 2,019 1,788 1,802 953 1,244
Profit before tax 4,400 3,417 3,973 4,836 4,220
Profit after tax 2,656 2,221 2,107 2,568 2,275
Capital Metrics 31-Dec-16 31-Dec-15 31-Dec-14 31-Dec-13 31-Dec-12
Total risk weighted assets (RWA) 148,811 143,707 137,037 140,279 129,812
Common equity tier-1 capital 16,078 14,688 13,958 13,245 12,232
Tier-2 capital 6,394 5,776 4,163 3,519 3,414
Total regulatory capital (Tier 1 and Tier 2) 22,472 20,463 18,121 16,764 15,646
Statutory capital (Paid up capital and statutory reserve) 14,020 12,224 12,224 11,474 10,507
Capital to risk weighted assets ratio (CRAR) 15.10% 14.24% 13.22% 11.95% 12.05%
Common equity Tier - 1 capital to RWA 10.80% 10.22% 10.19% 9.44% 9.42%
RWA to total assets 70.46% 75.81% 79.62% 88.85% 88.22%
Credit Quality 31-Dec-16 31-Dec-15 31-Dec-14 31-Dec-13 31-Dec-12
Non performing loan 4,096 4,263 5,157 3,697 3,071
Specific provision (cumulative) 3,475 2,821 2,409 1,929 1,387
General provision (cumulative) 2,546 2,160 1,916 1,644 1,563
NPL Ratio 2.69% 3.27% 4.36% 3.59% 3.17%
NPL coverage ratio (Specific provision + General provision) /
146.99% 116.84% 83.86% 96.66% 96.07%
Gross NPL
Trade Business Metrics 2016 2015 2014 2013 2012
Export 91,834 84,302 77,452 74,003 67,518
Import (LC) 121,421 113,770 104,939 112,977 103,171
Guarantee 8,508 8,534 5,573 6,307 6,528
Efficiency / Productivity Ratios 2016 2015 2014 2013 2012
Return on average equity (ROE) 12.94% 10.95% 10.93% 14.44% 14.44%
Return on average assets (ROA) 1.33% 1.23% 1.28% 1.68% 1.72%
Cost to income ratio 43.99% 47.41% 42.18% 38.31% 36.93%
Weighted average interest rate of loan (year-end) 9.98% 11.29% 12.43% 14.57% 14.80%
Weighted average interest rate of deposits (year-end) 4.87% 6.12% 7.26% 8.84% 9.50%
Spread (year-end) 5.11% 5.17% 5.17% 5.73% 5.30%
Operating profit per employee 4.05 3.30 3.70 3.86 4.07
Operating profit per branch 78.27 65.06 75.99 81.52 81.55
Share based metrics 2016 2015 2014 2013 2012
Earnings per share in BDT (Not restated) 3.78 3.63 3.45 4.20 3.72
Operating profit per share in BDT (Not restated) 9.13 8.52 9.45 9.47 8.94
Price earning ratio (times) 7.67 7.87 7.89 6.93 8.52
Market price per share (BDT) as on close of the year at DSE 29.00 28.60 27.20 29.10 31.70
NAV (book value) per share in BDT (Not restated) 29.27 33.54 32.87 30.19 27.99
Dividend Cover ratio: (EPS/DPS) 1.51 1.04 1.72 2.10 1.86
Dividend (%) 25 35 20 20 20
Cash (%) 20 20 20 20 20
Stock (%) 5 15 - - -
Market capitalization (at close of year) 20,383 17,480 16,624 17,785 19,374
Market price to NAV per share (times) 0.99 0.85 0.83 0.96 1.13
Other Information 31-Dec-16 31-Dec-15 31-Dec-14 31-Dec-13 31-Dec-12
Number of branches 82 80 76 71 67
Number of employees (regular) 1,584 1,577 1,559 1,498 1,343
Number of deposit accounts 426,685 367,487 380,156 352,627 305,363
Number of loan Accounts 305,611 234,185 179,328 178,896 132,238
Number of foreign correspondents 727 713 697 715 663
Number of ATM 202 197 191 175 160
Number of priority centers 13 15 14 11 8
MARKET PRICE INFORMATION

DSE CSE
Total Volume
Month Total Volume Total Volume
Month High Month Low Month High Month Low on DSE & CSE
(Number) (Number)
Jan-16 29.80 26.50 1,845,700 29.50 27.50 92,545 1,938,245
Feb-16 31.30 27.70 2,526,176 30.50 28.10 65,895 2,592,071
Mar-16 30.80 25.00 5,211,417 30.80 25.00 259,197 5,470,614
Apr-16 33.30 25.10 3,404,520 35.00 24.90 270,855 3,675,375
May-16 27.00 24.90 1,213,668 26.80 24.20 275,026 1,488,694
Jun-16 29.80 25.70 2,592,224 30.00 24.50 604,628 3,196,852
Jul-16 30.40 27.70 1,850,727 29.50 27.10 74,675 1,925,402
Aug-16 29.90 27.90 2,042,378 29.00 26.00 283,410 2,325,788
Sep-16 29.80 28.50 2,178,428 29.50 28.50 723,087 2,901,515
Oct-16 30.00 28.40 1,782,649 29.50 27.00 206,434 1,989,083
Nov-16 31.00 28.50 3,005,164 30.50 28.60 466,188 3,471,352
Dec-16 29.50 27.90 7,023,975 29.90 27.40 499,145 7,523,120
DSE PRICE VOLUME CHART OF EBL SHARE 2016

VITAL GRAPHS
Key Performance Indicators
VITAL GRAPHS
VITAL GRAPHS
HORIZONTAL ANALYSIS OF BALANCE SHEET (BANK ONLY)

BDT in Million
Particulars 2016 2016 Vs 2015 2015 2015 Vs 2014 2014 2014 Vs 2013 2013 2013 Vs 2012 2012
Cash 12,199 11.46% 10,944 6.24% 10,302 25.93% 8,181 -24.23% 10,797
Balances with other Banks and FI 13,572 -0.87% 13,691 114.45% 6,384 -38.63% 10,403 15.76% 8,986
Money at call and short notice 100 - 1,060 - 100
Investments 21,449 -8.33% 23,398 -5.10% 24,655 -4.82% 25,904 19.62% 21,655
Loans and advances 152,084 16.78% 130,226 10.09% 118,291 14.95% 102,910 6.40% 96,720
Fixed assets 5,940 -0.04% 5,943 -16.14% 7,087 2.75% 6,897 15.54% 5,970
Other assets 5,688 9.23% 5,207 25.37% 4,153 22.34% 3,395 25.60% 2,703
Non banking assets 154 0.00% 154 -19.65% 192 0.00% 192 -11.94% 218
Total assets 211,185 11.41% 189,563 10.13% 172,124 9.02% 157,882 7.29% 147,148
Borrowing 39,061 27.89% 30,543 17.38% 26,021 84.81% 14,080 -54.81% 31,158
Deposits 140,284 9.61% 127,990 9.59% 116,792 -0.26% 117,102 27.59% 91,781
Other Liabilities 11,268 6.97% 10,534 14.19% 9,225 11.82% 8,250 16.19% 7,100
Total liabilities 190,614 12.74% 169,067 11.20% 152,037 9.04% 139,431 7.22% 130,039
Shareholders' equity 20,572 0.37% 20,496 2.04% 20,087 8.87% 18,450 7.84% 17,109
Total liabilities and shareholders' equity 211,185 11.41% 189,563 10.13% 172,124 9.02% 157,882 7.29% 147,148
Horizontal Analysis of Balance Sheet refers to the analysis of growth of each component of Balance Sheet items from the previous period.
VERTICAL ANALYSIS OF BALANCE SHEET (BANK ONLY)

BDT in Million
Particulars 2016 2016 (%) 2015 2015 (%) 2014 2014 (%) 2013 2013 (%) 2012 2012 (%)
Cash 12,199 5.78% 10,944 5.77% 10,302 5.99% 8,181 5.18% 10,797 7.34%
Balances with other Banks and FI 13,572 6.43% 13,691 7.22% 6,384 3.71% 10,403 6.59% 8,986 6.11%
Money at call and short notice 100 0.05% - 0.00% 1,060 0.62% - 0.00% 100 0.07%
Investments 21,449 10.16% 23,398 12.34% 24,655 14.32% 25,904 16.41% 21,655 14.72%
Loans and advances 152,084 72.01% 130,226 68.70% 118,291 68.72% 102,910 65.18% 96,720 65.73%
Fixed assets 5,940 2.81% 5,943 3.13% 7,087 4.12% 6,897 4.37% 5,970 4.06%
Other assets 5,688 2.69% 5,207 2.75% 4,153 2.41% 3,395 2.15% 2,703 1.84%
Non banking assets 154 0.07% 154 0.08% 192 0.11% 192 0.12% 218 0.15%
Total assets 211,185 100.00% 189,563 100.00% 172,124 100.00% 157,882 100.00% 147,148 100.00%
Borrowing 39,061 18.50% 30,543 16.11% 26,021 15.12% 14,080 8.92% 31,158 21.17%
Deposits 140,284 66.43% 127,990 67.52% 116,792 67.85% 117,102 74.17% 91,781 62.37%
Other liabilities 11,268 5.34% 10,534 5.56% 9,225 5.36% 8,250 5.23% 7,100 4.83%
Total liabilities 190,614 90.26% 169,067 89.19% 152,037 88.33% 139,431 88.31% 130,039 88.37%
Shareholders' equity 20,572 9.74% 20,496 10.81% 20,087 11.67% 18,450 11.69% 17,109 11.63%
Total liabilities and shareholders' equity 211,185 100.00% 189,563 100.00% 172,124 100.00% 157,882 100.00% 147,148 100.00%
Vertical Analysis of Balance Sheet refers to the components of Balance Sheet items as a % of total Assets over the periods which would be termed as
common sizing of Balance Sheet.
HORIZONTAL ANALYSIS OF PROFIT & LOSS ACCOUNT (BANK ONLY)

BDT in Million
Particulars 2016 2016 Vs 2015 2015 2015 Vs 2014 2014 2014 Vs 2013 2013 2013 Vs 2012 2012
Interest income 13,546 1.56% 13,338 1.35% 13,160 -11.12% 14,807 8.10% 13,698
Interest expenses 8,016 -18.14% 9,793 7.02% 9,151 -7.71% 9,916 11.61% 8,884
Net interest income 5,529 55.98% 3,545 -11.58% 4,009 -18.04% 4,892 1.61% 4,814
Income from investments 3,315 -7.30% 3,576 6.97% 3,343 61.45% 2,071 38.56% 1,495
Commission, exchange and brokerage 2,449 -6.85% 2,629 5.74% 2,487 9.53% 2,270 1.54% 2,236
Other operating income 165 13.87% 145 -3.43% 150 0.22% 150 26.44% 118
Operating income 11,459 15.80% 9,896 -0.94% 9,989 6.47% 9,382 8.30% 8,663
Operating expenses 5,041 7.45% 4,691 11.33% 4,214 17.24% 3,594 12.35% 3,199
Operating profit 6,418 23.32% 5,204 -9.89% 5,775 -0.22% 5,788 5.94% 5,464
Specific provision 1,903 -5.84% 2,021 31.19% 1,540 118.08% 706 -3.05% 728
General provision 385 58.13% 243 -10.18% 271 222.03% 84 252.19% 24
Provision for loans and advance 2,288 1.04% 2,264 25.00% 1,811 129.14% 790 5.06% 752
Other provision (269) -43.52% (476) 5285.30% (9) -105.45% 162 -67.05% 492
Total provisions 2,019 12.91% 1,788 -0.80% 1,802 89.22% 953 -23.45% 1,244
Profit before tax 4,400 28.77% 3,417 -14.01% 3,973 -17.84% 4,836 14.60% 4,220
Tax provision 1,743 45.78% 1,196 -35.94% 1,867 -17.70% 2,268 16.63% 1,945
Profit after tax 2,656 19.61% 2,221 5.43% 2,107 -17.97% 2,568 12.87% 2,275
Horizontal Analysis of Profit & Loss Account refers to the analysis of growth of each component of Profit & Loss Account from the previous period.
VERTICAL ANALYSIS OF PROFIT & LOSS ACCOUNT (BANK ONLY)

BDT in Million
Particulars 2016 2016 (%) 2015 2015 (%) 2014 2014 (%) 2013 2013 (%) 2012 2012 (%)
Interest income 13,546 69.55% 13,338 67.74% 13,160 68.76% 14,807 76.73% 13,698 78.06%
Interest expenses 8,016 41.16% 9,793 49.74% 9,151 47.81% 9,916 51.38% 8,884 50.63%
Net interest income 5,529 28.39% 3,545 18.01% 4,009 20.95% 4,892 25.35% 4,814 27.44%
Income from investments 3,315 17.02% 3,576 18.16% 3,343 17.47% 2,071 10.73% 1,495 8.52%
Commission, exchange and brokerage 2,449 12.58% 2,629 13.35% 2,487 12.99% 2,270 11.77% 2,236 12.74%
Other operating income 165 0.85% 145 0.74% 150 0.78% 150 0.78% 118 0.67%
Operating income 11,459 58.84% 9,896 50.26% 9,989 52.19% 9,382 48.62% 8,663 49.37%
Operating expenses 5,041 25.88% 4,691 23.83% 4,214 22.02% 3,594 18.62% 3,199 18.23%
Operating profit 6,418 32.96% 5,204 26.43% 5,775 30.17% 5,788 29.99% 5,464 31.14%
Specific provision 1,903 9.77% 2,021 10.26% 1,540 8.05% 706 3.66% 728 4.15%
General provision 385 1.98% 243 1.24% 271 1.42% 84 0.44% 24 0.14%
Provision for loans and advance 2,288 11.75% 2,264 11.50% 1,811 9.46% 790 4.10% 752 4.29%
Other provision (269) -1.38% (476) -2.42% (9) -0.05% 162 0.84% 492 2.80%
Total provisions 2,019 10.37% 1,788 9.08% 1,802 9.42% 953 4.94% 1,244 7.09%
Profit before tax 4,400 22.59% 3,417 17.35% 3,973 20.76% 4,836 25.06% 4,220 24.05%
Tax provision 1,743 8.95% 1,196 6.07% 1,867 9.75% 2,268 11.75% 1,945 11.08%
Profit after tax 2,656 13.64% 2,221 11.28% 2,107 11.01% 2,568 13.31% 2,275 12.97%
Vertical Analysis of Profit & Loss Account refers to the components of Profit & Loss Account as a % of total income (Interest income + Investment Income +
Commission, exchange, brokerage and others) over the periods which would be termed as common sizing of Profit & Loss Account.
VALUE ADDED STATEMENT

Value added is the wealth accretion made by Eastern Bank Limited through providing banking and other financial services in 2016
for its employees, directors, government and shareholders in the form of salaries & allowances, remuneration, duties & taxes, net
profit after tax respectively and also indicates value of use of fixed assets through depreciation.
Figures in BDT
Value Added for the year ended 31 December
Particulars 2016 2015

Wealth creation
Revenue from Banking services 19,402,801,421 19,618,285,474
Less: Cost of services & supplies (9,878,152,092) (11,531,291,043)
9,524,649,329 8,086,994,431
Non-banking income 72,441,754 70,547,147
Provision for loans & other assets (2,018,702,613) (1,787,934,882)
Total Wealth Creation 7,578,388,470 6,369,606,697
Wealth distribution
Employees & Directors
Employees as salaries & allowances 2,821,251,248 2,579,982,209
Directors as fees 3,769,127 3,926,740
Government 1,834,397,794 1,297,539,994
Coporate tax 1,743,025,267 1,195,639,458
Service tax / Value added tax 87,434,575 98,795,553
Municipalties / local taxes 2,452,952 1,896,383
Excise duties 1,485,000 1,208,600
Shareholders
Dividend to shareholders 1,757,141,880 2,139,129,248
Retention for future business growth

Retained earnings 899,344,944 81,786,952
Depreciation and amortization 262,483,477 267,241,554
Total Wealth Distribution 7,578,388,470 6,369,606,697
ECONOMIC VALUE ADDED STATEMENT

Economic Value Added (EVA) is the measure of financial performance of an organization. It is based on the principle that since a company’s management employs
equity capital to earn a profit; it must pay for the use of this equity capital. This management tool is useful to shareholders in particular and other stakeholders in
general to take decision for increasing wealth.
EVA is equal to Profit after Tax (PAT) plus the provision for loans & other assets less written off during the year minus cost of equity where cost of equity is the
opportunity cost that the shareholders forego. This cost of equity is calculated considering the risk free rate based on weighted average rate of 10 years Treasury
bond issued by Bangladesh Government plus 2% risk premium.
EVA statement for the year ended 31 December

Figures in BDT
Shareholders equity 20,571,642,404 20,496,092,411
Add: Accumulated provision for loans & advances and other assets 6,150,252,324 5,392,915,112
Capital Employed 26,721,894,728 25,889,007,522
Average Capital Employed 26,305,451,125 25,594,227,933
Earnings:
Profit after tax 2,656,486,826 2,220,916,202
Add:Provision for loans & advances and other assets charged during the year 2,018,702,613 1,787,934,882
Less: Written off loans during the year 1,957,170,216 2,129,901,812
Net earnings 2,718,019,223 1,878,949,272
Cost of equity:
Average cost of equity (Based on weighted avergae rate of 10 years treasury bond issued by the Bangladesh Government) Plus 2% risk premium 9.16% 9.40%
Capital charge (Cost of average equity) 2,409,579,323 2,405,857,426
Economic Value Added 308,439,900 (526,908,154)
MARKET VALUE ADDED STATEMENT

Market value added statement reflects the company’s performance evaluated by the market through the share price. This amount is derived from the difference
between market capitalization and book value of the shares outstanding. It signifies the enhancement of financial solvency as perceived by the market.
Market Value Added statement as at 31 December

Face Value per share (BDT) 10.00 10.00
Market value per share (BDT) 29.00 28.60
Number of shares outstanding 702,856,752 611,179,785
Total market capitalization (BDT million) 20,382.85 17,479.74
Book value of paid up capital (BDT million) 7,028.57 6,111.80
Market value added (BDT million) 13,354.28 11,367.94
FINANCIAL GOALS AND PERFORMANCES

Parameters Goals 2017 Actual 2016 Actual 2015
Capital to risk weighted assets ratio (CRAR) 13% Plus 15.10% 14.24%
Return on average equity (ROE) 12% Plus 12.94% 10.95%
Return on average assets (ROA) 1.50% Plus 1.33% 1.23%
Cost to income ratio Less than 45% 43.99% 47.41%
NPL (%) Less than 3% 2.69% 3.27%
Year-end deposits (BDT million) 177,384 140,284 127,990
Year-end loans and advances (BDT million) 169,330 152,084 130,226
FINANCIAL CALENDAR
Quarterly Results
Particulars Submission Date to BSEC
Un-audited consolidated results for the 1st Quarter ended 31 March 2016 5 May 2016
Un-audited consolidated results for the 2nd Quarter and half-year ended 30 June 2016 28 July 2016
Un-audited consolidated results for the 3rd Quarter ended 30 September 2016 20 October 2016
Dividends
24th Annual General Meeting Notice Date 10 April 2016
Distribution of 35% Dividend (20% Cash & 15% Stock) in respect of Financial Year ended 31 December 2015 Record Date 25 April 2016
24th Annual General Meeting Held On 19 May 2016
Distribution of Cash Dividend Date of Disbursement 26 May 2016
Issuance of Stock Dividend Date of Issuance 9 June 2016
Taxation on Dividend Income

Stock dividend is tax exempted. In case of cash dividend, following is the current deduction of tax at source on dividend income as per current fiscal act:
 If the shareholder is a company, either resident or non-resident Bangladeshi, at the rate applicable to the company i.e. 20%
 If the shareholder is a resident or non-resident Bangladeshi person, other than company, at the rate of 10% where the person receiving such dividend furnishes
his 12 digit e-TIN to the payer or 15% the person receiving such dividend fails to furnish his 12 digit e-TIN to the payer
 If the shareholder is a non-resident (other than Bangladeshi) person, other than company, at the rate of 30%
Since stock dividend is out of the loop of withholding tax deduction, its effective rate of return is much higher than cash dividend.
Taxation Arising From Capital Gain

Capital gain arising from transfer or sale of Government securities is tax exempted. Capital gain arising from transfer or sale of Stocks and shares of public
companies listed with stock exchanges is taxable at the rate of 10%.
Stock Details
Particulars DSE CSE
Stock Symbol EBL EBL
Company Code 148 22025
Listing Year 1993 2004
Market Category A A
Electronic Share Yes Yes
Market Lot (Nos) 1 1
Face Value (Taka) 10 10
Total Number of Securities (Nos) 702,856,752 702,856,752
Information Sensitive to Share Price
Particulars Date of Disclosure

Corporate Disclosure for approval of Financial Statements 2015, Recommendation of Dividend, Record Date for Dividend
3 April 2016
entitlement of 24th AGM (19.05.2016) of EBL
Corporate Disclosure for First Quarterly Financial Information (Un-Audited) ended on 31 March 2016 4 May 2016
Approval for setting up Representative Office of Eastern Bank Limited (EBL) in Guangzhou, Guangdong Province in China 26 June 2016
Corporate Disclosure for Second Quarterly Financial Information (Un-Audited) ended on 30 June 2016 27 July 2016
Corporate Disclosure for 3rd Quarterly Financial Information (Un-Audited) ended on 30 September 2016 19 October 2016
Accessibility of Annual Report 2016

Annual Report 2016 and other information about EBL may be observed on EBL’s website www.ebl.com.bd. EBL provides copies of Annual Reports to the Securities
and Exchange Commission, Bangladesh Bank, Dhaka Stock Exchange and Chittagong Stock Exchange for their reference. Respectable stakeholders may read them
at their public reference room or library.
GLIMPSES FROM 24TH AGM
Chairman of the board M. Ghaziul Haque gives his inaugural Safiar Rahman, DMD & Company Secretary gives his welcome speech at the
speech at the 24th AGM 24th AGM
Shareholders pose for a group photograph with the Directors and A shareholder gives her feedback on the annual report.
MD and CEO of EBL.
A shareholder gives his views on the performance of the bank. A section of the shareholders attending the 24th AGM of EBL
Registration for the AGM in progress A section of the shareholders applauding the announcement of dividend at
the 24th AGM.
GOVERNANCE REPORTS
We give utmost importance to key parameters of

corporate governance such as board system and its
independence, function of board sub-committees,
fair financial reporting, disclosure and compliance,
and consistency of shareholders value enhancement.
All our banking activities center on these key principles
of good governance. Corporate governance gives
the board and the management the knowledge and
control of organization.
DIRECTORS’ RESPONSIBILITY STATEMENT

Apart from discharge of oversight responsibilities, Board of presented in the “Stakeholders Information” section will
Directors has to ensure that the Financial Statements of the Bank provide details information to support this.
and its subsidiaries are prepared in accordance with applicable
• Basis for related party transactions and a statement of
Bangladesh Financial Reporting Standards (including
all related party transactions: The basis for related party
Bangladesh Accounting Standards), relevant provisions of the
transactions has been stated in the “Corporate Governance
Companies Act 1994, Bank Company Act 1991 (amended
Report” and a statement of related party transactions
up to 2013), rules and regulations of Bangladesh Bank and
has been presented in the Annexure C1 of the Financial
Bangladesh Securities and Exchange Commission (BSEC),
Statements 2016.
listing rules of relevant stock exchanges and other applicable
laws, rules and regulations. • Utilization of proceeds from public issues, rights issues
and/or through any others instruments: Since taking over
In compliance with section 184 of Companies Act 1994, the
the businesses, assets, liabilities and losses of erstwhile Bank
Annual Report which is presented in the Annual General
of Credit & Commerce International (Overseas) Limited,
Meeting (AGM) has a separate section as ‘Directors’ Report
Eastern Bank did not raise any capital through public issues
2016’ that contains, among others, a review of the following
except a Right Issue in 2009. However, the bank raised BDT
issues:
2,500 million through issuance of 7-year non-convertible
• State of the Bank’s affairs: A review of financial performance sub-ordinated bonds in the first quarter 2015. The proceeds
and position has been presented in the Directors’ Report were utilized to generate liquidity and provide additional
2016 and Management Discussion and Analysis (MD&A) capital cushion in light of risk weighted Capital Adequacy
section with relevant analytics. Ratio of the Bank.
• Any recommended reserve in the balance sheet: An • Deterioration of financial results after the company goes
amount of BDT 879.90 million has been transferred to for IPO, Rights Offer, Direct Listing, etc.: Refer to the
‘Statutory Reserve’ being 20% of Profit before Tax (PBT) as earlier paragraph, the bank issued Right Share in 2009 but
per section 24 of Bank Company Act 1991 (amended up to after that financial results of the Bank did not deteriorate.
2013).
• Explanation of variances between Quarterly and Annual
• Recommended dividend: The Board has recommended Financial performance: A brief discussion along with
20% cash dividend and 5% stock dividend for the completed financial information in this regard has been presented in
year 2016. the Directors’ Report 2016.
• Any event after balance sheet date which may affect • Remuneration to directors including independent
company’s financial condition: None. directors: Remuneration provided to directors has been
presented in the Corporate Governance Report and Note
• Any change in bank’s activities, subsidiaries’ activities
35 and Note 36 to the Financial Statements.
etc.: No major change in strategy and actions in the Bank
and Subsidiaries experienced in 2016. • The financial statements prepared by the management
present fairly its state of affairs, the result of its operations,
In compliance with BSEC Corporate Governance notification
cash flows and changes in equity: The financial statements
dated 07 August 2012 the Directors of the Bank hereby
prepared by the management as at and for the year ended
highlights following issues, among others, in their report as
31 December 2016 present fairly, in all material respects,
prescribed:
its state of affairs, the results of its operations, cash flows
• Industry outlook and possible future developments in the and changes in equity. The external auditors i.e. Rahman
industry: A brief review in this regard has been presented Rahman Huq, Chartered Accountants also provided their
in the Directors’ Report 2016. opinion on the same by issuing an unqualified audit report.
• Segment-wise or Product-wise Performance: Business- • Maintenance of proper books of account: Proper books
wise performance has been presented in the MD&A section. of account as required by law have been kept by EBL. The
external auditors i.e. Rahman Rahman Huq, Chartered
• Risks and Concerns: A detailed discussion regarding risks
Accountants also provided their opinion on the same
and management of the same has been presented in “Risk
in point (d) of “Report on Other Legal and Regulatory
Management” section of this Report.
Requirements” of their audit report.
• Discussion on Operating Performance: A brief description
• Consistent application of appropriate accounting policies
has been presented in “Financial Performance Highlights”
and estimates in preparation of financial statements:
part of the Directors’ Report 2016.
Appropriate accounting policies have been consistently
• Discussion on continuity of any Extra-Ordinary gain applied in preparation of the financial statements of the Bank
or loss: In last five years EBL has not experienced any and the accounting estimates are based on reasonable and
extra-ordinary gain or loss. EBL’s Five Years Progression prudent judgment. Estimates and underlying assumptions
68 Annual Report 2016 Eastern Bank Ltd. GOVERNANCE REPORTS
are reviewed on an ongoing basis and any revision to these • The pattern of shareholdings: Please see Corporate
are recognized in the period in which the estimate is revised Governance Report and note 14.1 of the Notes to the
and in any future period affected. Financial Statements 2016.
• Following International Accounting Standards (IAS)/ • Brief resume of the directors and nature of their expertise
Bangladesh Accounting Standards (BAS)/International in specific functional areas: Brief profile of directors
Financial Reporting Standards (IFRS)/ Bangladesh and their representation in other companies have been
Financial Reporting Standards (BFRS), as applicable in presented in ‘Board of Directors’ section of this report and
Bangladesh, in preparation of financial statements and Annexure C of the Financial Statements 2016.
any departure there from has been adequately disclosed:
To adhere to good corporate governance practices, the
Details description including disclosure of departures has Bank has been complying with two paramount guidelines
been presented in Note 2.1 to the Financial Statements from Bangladesh Bank (BRPD Circular No. 11, 18 and 19
2016. dated 27 October 2013) and BSEC (Notification No. SEC/
• The system of internal control is sound in design and CMRRCD/2006-158/134/Admin/44 dated 07 August 2012).
has been effectively implemented and monitored: A brief EBL’s compliance status to those prescribed practices is
description in this regard has been presented in the Internal presented in Corporate Governance Report.
Control System paragraph under Directors’ Report 2016. The Directors, to the best of their knowledge and information,
• Significant doubts upon the Bank’s ability to continue as hereby confirm that the Annual Report 2016 together with
a going concern: Nothing as yet. the Directors’ Report and the Financial Statements have been
prepared in compliance with applicable governing Acts, rules,
• Explanations to significant deviations from the last year’s regulations, guidelines and laws of various regulatory bodies
operating results: Significant deviations of operating results including Bangladesh Bank and BSEC.
in 2016 have been adequately discussed in the Directors’
Report 2016 and MD&A section.
• Summarization of last five year’s key operating and On behalf of the Board of Directors
financial data: Please see ‘Five-Year Progression of EBL’ in
the section of Stakeholders’ Information.
• Declaration of dividend or not: Declared 20% cash
dividend and 5% stock dividend for the year 2016.
• No. of Board meetings and directors’ attendance in 2016:
Please see ‘Board meeting and attendance’ section under M. Ghaziul Haque
Corporate Governance Report. Chairman
REPORT OF THE AUDIT COMMITTEE

Audit Committee of the Board • To review the financial reporting process, the system and
effectiveness of internal control process, compliance status
An Audit Committee (AC) of the Board was formed and its
roles and responsibilities were defined in line with Corporate of inspection report from Bangladesh Bank and assessment
Governance Notification issued by Bangladesh Securities and of the overall processes and procedures for monitoring
Exchange Commission (BSEC) on 07 August 2012 and BRPD compliance with laws and regulations and its own code of
Circular No.11 issued by Bangladesh Bank (BB) on 27 October business conduct.
2013. Main objectives of AC are:
• To assist the Board in fulfilling its oversight responsibilities Composition and Qualifications
including implementation of the objectives, strategies The AC was last re-constituted on 19 May 2016 with the
and overall business plans set by the Board for effective following Board Members:
functioning of the bank.
Status
SL Status with Educational Meeting
Name with the
No. the Bank Qualification Attendance
Committee
Bachelor of
Independent Commerce/ A.I.C.S,
01. Meah Mohammed Abdur Rahim Chairman 08/11
Director B.Sc. in Economics &
Finance
02. A.M. Shaukat Ali Director Member B. Sc (Engg.), Civil 10/11
Mufakkharul Islam Khasru, (Representing
03. Director Member MBA (IBA) 10/11
Namreen Enterprise Ltd.)
Gazi Md. Shakhawat Hossain (Representing
04. Director Member M.com (Accounting) 11/11
Purnima Construction Pvt. Ltd.)
Independent
05. Ormaan Rafay Nizam Member Commerce Graduate 08/11
Director
The Company Secretary acts as the secretary of the Audit Committee of the Board.
Roles and Responsibilities of Audit Committee and external auditors and inspectors from the regulators
and inform the Board on a regular basis.
The roles and responsibilities of Audit Committee have been
defined in alignment with the relevant provisions of Corporate Financial Reporting
Governance Guidelines/Notification issued by BB and BSEC,
• Review, before submission to the Board for approval,
two paramount regulators for the bank, and other corporate
periodic financial statements to determine whether they
governance best practices and standards. Some important roles
are complete and consistent with applicable accounting and
and responsibilities are highlighted below:
reporting standards set by respective governing bodies and
Internal Control regulatory authorities.
• Evaluate whether management is adhering to appropriate • Consult with management and external/statutory auditors
risk management, compliance and governance practices to review annual financial statements or any other ad-hoc
and have clear understanding of their respective roles and financial reports before their finalization.
responsibilities.
Internal Audit
• Review whether arrangements made by the management
• Monitor/evaluate whether internal audit functions are truly
for developing and maintaining a suitable Management
independent.
Information System (MIS) are adequate.
• Review the activities, structure and style of conduct of
• Monitor whether suitable suggestions made by internal and
internal audit functions to ensure that no unjustified
external auditors to improve internal control practices have
restrictions or limitations are imposed.
been duly implemented by the management.
• Review and assess the annual internal audit plan.
• Review the existing risk management policy and procedures
to improve health and efficiency of the portfolio. • Review the efficiency and effectiveness of internal audit
function.
• Review the corrective measures taken by the management as
regards to the reports relating to fraud-forgery, deficiency in • Review and ensure that appropriate recommendations
internal control or other similar issues detected by internal made by internal auditors to remove irregularities, if any,
are duly acted upon by concerned personnel in running the Meetings of the Audit Committee
affairs of the bank.
Bangladesh Bank suggested banks to hold at least 4 meetings in
• Meet the Head of ICC (Internal Control & Compliance) and a year. The Audit Committee of EBL held 11 (Eleven) meetings
the Head of Internal Audit at least once in a year, without in 2016 and had detailed discussions and review sessions with
management being present, to discuss their remit and any the Head of Audit, Head of Internal Control & Compliance,
issues arising from internal audits carried out. Both of them External Auditors regarding their findings and remedial
shall be given the right of direct access to the Chairman of suggestions on various issues that need improvement. The AC
the Audit Committee. instructed management to follow those remedial suggestions
External Audit and monitored accordingly. Meeting dates are as follows:
• Make recommendations to the Board, to be put to SL No. Meetings Date of Meeting

shareholders for approval in the AGM, in relation to 01. 80 Audit Committee Meeting 31 January 2016
appointment, re-appointment and removal of the bank’s 02. 81 Audit Committee Meeting 29 February 2016
external auditors. The Committee shall oversee the selection 03. 82 Audit Committee Meeting 3 April 2016
process of new auditors and shall investigate any issue that 04. 83 Audit Committee Meeting 4 May 2016
might have led auditors to resign. 05. 84 Audit Committee Meeting 19 June 2016
• Oversee the relationship with the external auditors 06. 85 Audit Committee Meeting 27 July 2016
including: 07. 86 Audit Committee Meeting 31 August 2016
08. 87 Audit Committee Meeting 29 September 2016
g
Approval of their remuneration, i.e. fees for audit or
non-audit services. 09. 88 Audit Committee Meeting 19 October 2016
10. 89 Audit Committee Meeting 23 November 2016
g
Assessing annually their independence and objectivity 11. 90 Audit Committee Meeting 28 December 2016
taking into account relevant professional and regulatory
requirements. Major areas focused by Audit Committee in 2016
g
Satisfying itself that there are no relationships (such as • Reviewed and approved the ‘Annual Audit Plan 2017’ and
family, employment, investment, financial or business) ‘Risk Based Audit Plan 2017’.
between the auditor and the bank (other than in the
• Reviewed the status of Suspicious Transaction Reports
ordinary course of business).
(STR) which was sent to Bangladesh Bank in 2015.
• Meet regularly with the external auditor, including once
at the planning stage before the audit and once after the • Reviewed Annual Financial Statements of the Bank for the
audit at the reporting stage. The Committee shall meet the year ended 31 December 2015 as certified by the External
external auditor at least once a year, without management Auditors, Rahman Rahman Huq, Chartered Accountants,
being present; to discuss their remit and any issues arising before submission to the Board of Directors for approval.
from the audit. • Evaluated performance of External Auditors (Rahman
• Review the findings and recommendations made by the Rahman Huq) before recommending for their re-
external auditors for removal of irregularities, if any, appointment in 2016 to the Board to be finally approved in
detected are duly acted upon by the management. the 24th AGM held on 19 May 2016.
• Reviewed the Corporate Governance Compliance Report
Compliance with existing laws and regulations
for the year ended 31 December 2015 as submitted by Hoda
Review whether the laws and regulations framed by the Vasi Chowdhury & Co, Chartered Accountants.
regulatory authorities (Central Bank, Securities Regulators
and other bodies) and internal circular/instructions/policy/ • Reviewed First Quarter (Q-1), Half-yearly (H-1) and Third
regulations approved by the Board and Management have been Quarter (Q-3) Financial Statements (Unaudited) of the
duly complied with. Bank for the year 2016 before submission to the Board for
approval.
Miscellaneous
• Reviewed Management Report on the Bank for the year
• The AC will submit a ‘Compliance Report’ on quarterly rest ended 31 December 2015 submitted by the External
to the Board mentioning any errors and irregularities, fraud Auditors, Rahman Rahman Huq, Chartered Accountants,
and forgery and other anomalies pointed by Internal and and its subsequent compliance by management thereof.
External Auditor and Inspection Team from Bangladesh
Bank. • Reviewed Bangladesh Bank Comprehensive Inspection
Report on EBL Head Office as on 31 December 2015 and
• The AC will submit the evaluation report relating to Internal subsequent compliance by the management thereof.
and External Auditor of the bank to the Board.
• Reviewed the effectiveness of Internal Control System of the
• This committee will supervise other assignments delegated Bank.
by the Board and evaluate its own performance regularly.
• Reviewed the audit ratings and summary of audit findings • Reviewed the annual report on financial health of the bank-
of all branches, departments and subsidiaries done in 2015. 2015.
• Reviewed the list of Top 20 defaulters as on 31 January 2016 • Reviewed the compliance statue of Bangladesh Bank, DOS
and advised the management to submit quarterly status Circular Letter to No. 17, dated 7 November 2012.
report of Top 20 defaulters.
• Made thorough and item-wise review of Budget of the Bank
• Reviewed the compliance status and related risk level of for 2017 and recommended to submit the same to the Board
branches, departments, subsidiaries and 6 (six) Core Risks for approval.
of the Bank.
The Minutes of the Audit Committee meetings containing
• Reviewed the revised ‘Guidelines on Internal Control & various suggestions and recommendations to the Management
Compliance’ of the Bank in accordance with BRPD Circular and the Board are placed subsequently to the Board for
No. 3 dated 8 March 2016 and BRPD Circular No. 6 dated 4 ratification on regular basis.
September 2016.
• Reviewed the (revised) Audit Policy and Guidelines of EBL.
On behalf of the Audit Committee,
• Reviewed the Money Laundering & Terrorist Financing
Risk Management Guidelines and recommended for
submission to the Board for approval.
• Reviewed ‘Fraud & Theft Risk Prevention and Management
Policy’ and recommended for submission to the Board for Meah Mohammed Abdur Rahim
approval. Chairman of the Audit Committee of the Board
• Reviewed the responsibilities of Board in strengthening
measures for prevention of Money Laundering & Terrorist
Financing as per Section 16(2) and 16(4) of the Anti-
Terrorism Act-2009.
REPORT OF THE RISK MANAGEMENT

COMMITTEE (RMC) OF THE BOARD
In compliance with BRPD Circular No. 11 dated 27 October 2013, the Board of Directors (BoD) of Eastern Bank Limited (EBL)
formed a three-member Risk Management Committee (RMC) of the BoD on 07 November 2013 and thereafter last reconstituted in
577 meeting of BoD held on19 May 2016. The objective of the committee is to reduce probable risks arising during implementation
of Board approved policies, procedures and strategies.
Composition and Qualifications

All 3 (three)members of RMC are Non-Executive Directors. The qualification of members, their status in RMC and attendance in
the meetings are noted below:
Status
Status with the Meeting
SL Name with the Educational Qualification
Bank Attendance
Committee
1 Mir Nasir Hossain Director Chairman M.com (Accounting) 4/4
2 Meah Mohammed Abdur Rahim Independent Member Bachelor of Commerce/ A.I.C.S, 3/4
Director B.Sc. in Economics & Finance
3 Gazi Md. Shakhawat Hossain Director Member M.com (Accounting) 3/4
The Company Secretary acts as the Secretary of RMC of the BoD.
Roles and Responsibilities of RMC Meetings of the RMC

The roles and responsibilities of RMC have been framed in line Bangladesh Bank advised RMC to hold at least 4 meetings in a
with the provisions of BRPD Circular No. 11 dated 27 October year. In line with the same, RMC held 4 (Four) meetings during
2013 and other best practices and standards. Some important 2016 and had detailed discussions and review sessions with
roles and responsibilities are highlighted below: the management regarding their findings, observations and
recommendations on the issues related to bank affairs that need
• It is the responsibility of RMC to identify and assess risks
improvement. Meeting dates were as follows:
of the bank and guide management to formulate strategies
for minimizing/controlling risks. The committee (RMC)
reviews the risk management policy of the bank and modify SL Meetings Date of Meeting
the same as per requirement from time to time. 01. RMC Meeting 01 25 April 2016
• RMC ensures maintenance of suitable administrative 02. RMC Meeting 02 04 August 2016
structure at the bank to control risks. To ensure compliance 03. RMC Meeting 03 09 November 2016
with risk management guidelines related to credit risk, 04. RMC Meeting 04 28 December 2016
foreign exchange risk, internal control and compliance risk,
money laundering risk and information and communication Major areas focused by RMC in 2016
technology risk, the RMC forms separate management
committees and also monitors their activities. Major area of focus by RMC of EBL BoD during 2016 are
highlighted below:
• RMC has to review the risk management policy and
guidelines of the bank at least once a year, make necessary • Reviewed and approved formation of ‘Risk Management
modifications as per requirement and submit the same to Division (RMD)’ in place of Risk Management Unit (RMU)
the BoD for approval. Besides, the committee reviews the with new organogram in compliance with DOS Circular
approval limits of loan and others and takes necessary Letter No. 13 of Bangladesh Bank (BB) dated 09 September
initiatives to modify the same as per requirement. 2015.
• The committee monitors implementation status of risk • Reviewed monthly Risk Management Reports, half yearly
management policy of the bank and examines whether Comprehensive Risk Management Report (CRMR)
remedial measures have been taken to minimize credit risk, and reviewed recommendations of BRMC (Bank Risk
market risk and operation risk of the bank. Management Committee) made during December 2015 to
November 2016 and with certain directions endorsed the
• The committee reviews various decisions and same for onward submission to Bangladesh Bank.
recommendations made by different risk committees of
management for onward submission to the BoD on regular • Reviewed Stress Test Reports from quarter ending
basis. December 2015 to quarter ending September 2016 and
endorsed the same for onward submission to BB on regular
• The committee complies with different directives/guidelines
basis.
as issued by Regulators from time to time.
• Reviewed and approved ICAAP (Internal Capital Adequacy • Monitored closely the implementation status of new capital
Assessment Process) and SRP (Supervisory Review Process) accord ‘BASEL III’ by the bank which is under phase-wise
return of the bank for the year 2015 for onward submission implementation by 2019 as per guidance of BB.
to BB. • Reviewed Bangladesh Bank’s report on EBL’s Comprehensive
• Reviewed Bangladesh Bank’s recommendations as Risk Management Ratings and Stress Test Report.
highlighted in SRP-SREP dialogue on ICAAP Return
for the year 2014 and advised Management for proper
implementation/compliance of the same. The Minutes of RMC Meetings containing various suggestions
and recommendations to the management were placed to the
• Reviewed Enterprise Risk Management (ERM) Policy of BoD subsequently for ratification on a regular basis.
EBL and followed-up implementation status of the same.
• Reviewed risk performance against approved Risk Matrix
(Key Risk Indicators) for the year ending December 2015
and half year ending June 2016 respectively. On behalf of RMC,
• Monitored regularly outstanding balances in relation to
classified, special mentions, written-off and compromised
settlement accounts and recovery status therefrom.
• Reviewed and approved bank’s risk appetite/internal limits
Mir Nasir Hossain
on major risk areas for the Risk Matrix (KRI) for the year
Chairman of the Risk Management Committee
2016.
CORPORATE GOVERNANCE REPORT

Corporate Governance selection and appointment of members of sub-committees of
Board and senior management rests primarily on the Board.
Weak governance has been blamed as one of the important
The onus of setting strategic pursuits and goals of the company is
catalysts behind recent financial crisis marked by shocking
also on the Board. The management of EBL as an extended wing
failures of many renowned financial institutions across globe.
of the Board executes policies and procedures set by the Board
On the contrary, good governance waters sustainable growth
for the greater interest of shareholders and other stakeholders.
by way of maintaining an equitable balance while meeting
The risk management and overall support functions of the bank
varied expectations from diverse stakeholders. The primary
has been designed and kept fully independent from Business to
objective of corporate governance, therefore, is to safeguard
guard against any unforeseen events that undermine the brand
stakeholders’ interest on a sustainable basis. Good governance
value of the Bank.
is manifested through adherence to ethical business norms, a
firm commitment to values and compliance with applicable Guiding principles on corporate governance of Basel Committee
laws and regulations, while enhancing shareholders value. as well as two local regulators (Central Bank and Securities
Regulator) have been taken into consideration while designing
Governance practices of the Bank overall governance mechanism of EBL. Due importance has
Board of Directors occupies the center stage of overall also been given to major parameters of corporate governance
governance practice of an organization and is responsible such as board system and its independence; function of board
for establishing an appropriate governance structure in the sub-committees, internal control over financial reporting;
company while the shareholders’ role is to appoint the suitable transparency, disclosure and compliance. All our banking
directors and the auditors. activities are guided by these key principles of good governance.
Principles of good governance are embedded in the core values Guiding Philosophy of Governance Practices
of EBL, a bank that strongly believes in inclusive and sustainable
growth. The Board of Directors plays a pivotal role in shaping As a locally incorporated bank, two key regulators-Bangladesh
governance structure and practices through their choice of Bank (Central Bank of Bangladesh) and Bangladesh Securities
strategy and leadership to drive the bank to growth path. Design and Exchange Commission (BSEC) played a major role in
and implementation of governance mechanism including shaping governance structure and practices of the Bank.
However, the Bank’s corporate governance philosophy SL. Mode of
encompasses not only regulatory and legal requirements but Name of Director
No. Change
also various internal rules, policies, procedures and best- 1. M. Ghaziul Haque Re-elected
practices of local and global banks. As a responsible corporate 2. Anis Ahmed Re-elected
citizen, the Bank is committed to sound governance practices (Representing Aquamarine
based on integrity, openness, fairness, professionalism and Distributions Ltd.)
accountability in building confidence among stakeholders. 3. Mufakkharul Islam Khasru Re-elected
The corporate governance philosophy of the Bank is based on (Representing Namreen Enterprise
the following principles: Ltd.)
• Creating value for all stakeholders without compromising To comply with the Corporate Governance (CG) Guidelines
issued by BSEC on 07 August 2012, the BoD appointed Meah
ethical principles.
Mohammed Abdur Rahim and Ormaan Rafay Nizam as
• Ensuring fairness and equitable treatment of all stakeholders, Independent Directors of the Board which was subsequently
including employees and shareholders. approved by the shareholders in the 21st AGM of EBL held on
31 March 2013.
• Compliance with all applicable laws, rules and regulations,
not only in letter but also in their spirit. The tenure of the office of an Independent Director shall be
3 (three) years, which may be extended for a further 1 (one)
• Ensuring transparency and accountability, and maintaining term only. Accordingly, the tenure of 1st Term as Independent
a high degree of disclosure levels with the motto ‘when in Directors expired in the last 24th AGM held on 19 May 2016.
doubt, disclose’. Being eligible, they were also reappointed in the same AGM for
• Embracing a trusteeship model in which management is the another 3 (three) years term after obtaining due clearance from
trustee of the shareholders’ wealth and not the owner. BSEC and thereafter from Bangladesh Bank.
• Establishing a sound system of risk management and As per Clauses 105 & 106 of the Articles of Association of the
internal controls with adequate safeguards and early Bank, 3 (three) Directors shall retire by rotation from the office
warning systems. of the BoD at the 25th AGM. All the retiring Directors are
eligible for re-election in the ensuing 25th AGM.
Structure of the Board
Non-Executive Director
According to Clauses 94 of the Articles of Association of EBL,
All the Directors of EBL including the Chairman are Non-
the Board of Directors (BoD)currently comprises 11 directors
Executive Directors except the Managing Director & CEO.
among whom 10 (ten) are Non-executive directors including the
Chairman and 1 (one) is the Managing Director (Ex-Officio). Independent Directors
The existing BoD of the Bank includes two Independent
EBL encourages effective representation of independent
Directors as prescribed in the BSEC Corporate Governance
directors in its Board to infuse diverse knowledge and core
Guidelines (No. 1.2), and Section 15 of Bank Company Act
competencies relevant to banking business. In compliance
1991 (amended up to 2013). with relevant Corporate Governance Guidelines, the BoD
Policy on Appointment of Directors has appointed 02 (two) independent directors, subsequently
approved by shareholders in 24th Annual General Meeting
Directors are appointed following relevant provision/clause (AGM). The independent directors being conversant in the field
of Companies Act 1994, Bank Company Act 1991 (amended of financial, regulatory and corporate laws enjoy full freedom
up to 2013), Corporate Governance Guidelines of BSEC and to carry out their assigned responsibilities. With them they
Bangladesh Bank, and Articles of Association of the Bank. have brought in more than 12 years of corporate management/
professional experiences to the BoD.
The BoD consists of noted entrepreneurs and business
professionals having experience and acumen in diverse range Board meeting and attendance
of businesses and operations. Collectively they have enriched
The Board of Directors holds meetings on a regular basis:
the Board with the knowledge and expertise in banking and
usually twice in a month but emergency meetings are called
finance, IT, accounting, marketing, administration, and
as and when required. Management provides information,
engineering. Their rich and diverse backgrounds have given the
references and detailed working papers for each item of agenda
Board a vantage point in directing and monitoring the Bank to to all the Directors well ahead of time fixed for the BoD meeting
achieve its desired objectives. for consideration. In the meeting, the Chairman of the BoD
Retirement and Election of Directors allocates sufficient time for the Directors to consider each item
of the agenda and allow them to discuss, inquire, and express
According to clauses 105 and 106 of the Articles of Association opinions freely on the items of interest so that they can fulfill
of the bank, following directors retired and being eligible were their duties to the best of their abilities. During the year 2016, a
re-elected at the 24thAnnual General Meeting (AGM) held on total 22 Board Meetings were held; the attendance records are
19 May 2016. as follows:
No. of The Directors who could not attend the meeting(s) were
Sl. Name Position Meetings granted leave of absence by the Board.
attended
Attendance of HoF and CSin Board Meeting
1. M. Ghaziul Haque Chairman 21/22
2. Mir Nasir Hossain Director 18/22 The Head of Finance (HoF) and the Company Secretary (CS) of
(Representing Mir Holdings the Bank attend the meetings of the Board of Directors, provided
Ltd.) that the Head of Finance and/or the Company Secretary do not
3. A. M. Shaukat Ali Director 20/22 attend such part of a meeting which involves consideration of
an agenda item relating to their personal matters.
4. Md. Showkat Ali Director 20/22
Chowdhury Ownership Composition
5. Salina Ali Director 16/22
(Representing Borak Real As on 31 December 2016 the Directors of EBL held 31.56% of
Estate (Pvt.) Ltd.) total shares whereas Financial Institutions and General Public
held 10.41% and 58.03% respectively:
6. Anis Ahmed Director 11/22
(Representing Aquamarine 31-12-2016 31-12-2015
Distributions Ltd.) % of
No of Shares % of total No of Shares
7. Meah Mohammed Abdur Independent 15/22 Sl. Composition total
Held shares Held shares
Rahim Director
8. Mufakkharul Islam Khasru Director 17/22 1 Directors 221,820,064 31.56% 192,923,886 31.57%
(Representing Namreen 2 General 407,869,621 58.03% 351,754,162 57.55%
Enterprise Ltd.) Public
9. Ormaan Rafay Nizam Independent 13/22 3 Financial 73,167,067 10.41% 66,501,737 10.88%
Director Institutions
10. Gazi Md. Shakhawat Director 17/22 Total 702,856,752 100.00% 611,179,785 100.00%
Hossain
(Representing Purnima
Directors’ Shareholding Status
Construction (Pvt.) Ltd.) In compliance with SEC Notifications dated 22 November 2011
11. Ali Reza Iftekhar Managing 19/22 and dated 07 December 2011, all the eligible directors (other
Director & than independent directors) of EBL have been holding required
CEO percentage of shares individually (minimum 2%) as well as
jointly (minimum 30%).
Shareholding structure of directors is as follows:
31-12-2016
Sl. Name Position No of Shares % of total
Held shares
1. M. Ghaziul Haque Chairman 22,569,438 3.21%
2. Mir Holdings Ltd. Director 35,047,671 4.99%
(Represented by Mir Nasir Hossain)
3. A. M. Shaukat Ali Director 14,396,264 2.05%
4. Namreen Enterprise Ltd. Director
(Represented by Md. Showkat Ali Chowdhury)
70,044,522 9.97%
5. Namreen Enterprise Ltd. Director
(Represented by Mufakkharul Islam Khasru)
6. Borak Real Estate (Pvt.) Ltd. Director 33,713,313 4.79%
(Represented by Salina Ali)
7. Aquamarine Distributions Ltd. Director 14,336,815 2.04%
(Represented by Anis Ahmed)
8. Meah Mohammed Abdur Rahim Independent Director - -
9. Ormaan Rafay Nizam Independent Director - -
10. Purnima Construction (Pvt.) Ltd. Director 31,712,041 4.51%
(Represented by Gazi Md. Shakhawat Hossain)
11. Ali Reza Iftekhar Managing Director & CEO - -
Total 221,820,064 31.56%
Shareholding of CEO, CS, HoF, Head of ICC and • Appointment of Independent Directors
top 5 Salaried Executives • Appointment of Alternate Directors
Please refer to Note 14.1 to the Financial Statements of 2016. • Appointment of Managing Director & CEO
Separation of Chairman and Chief Executive Responsibilities of the Chairman of the Board
Officer Roles
To set out the following responsibilities, BRPD Circular No.
In compliance with Bangladesh Bank BRPD Circular No. 11 11 dated 27 October 2013 issued by Bangladesh Bank and
and Circular Letter No. 18 dated 27 October 2013 and Clause Corporate Governance Notification issued by BSEC on 07
1.4 of BSEC CG Guidelines dated 07 August 2012, we report that August 2012 has been taken into consideration.
the Chairman of the Board M. Ghaziul Haque has been elected
from among the Directors and there are clear and defined roles The overall responsibility of the Chairman is to:
and responsibilities of the Chairman and the Chief Executive • Ensure that the Board sets and implements the Bank’s
Officer Ali Reza Iftekhar.
direction and strategy effectively.
The Chairman of the Board approves the agenda of the Board
• Act as the Bank’s lead representative, explaining aims and
meetings, assisted by the Managing Director and the Company
policies to the shareholders.
Secretary. Regular agenda items include approving credits
beyond CEO’s authority and aspects of the Bank’s corporate • Ensure no participation in or interference into the
strategy, financial performance, core risks and credit policy, administrative or operational and routine affairs of the
corporate governance, CSR and organizational structure, Bank.
human resources policy, customer and services strategies,
procurement policy, etc. The specific responsibilities of the Chairman,
On the other hand, CEO, being the Head of management
among others, are to:
team, is accountable to the Board and its Committees to run • Provide overall leadership to the Board, setting vision and
and manage the Bank in accordance with the prescribed driving innovation, working closely with the CEO.
policies, principles and strategies established by the Board
and rules, regulations and guidelines from the Central Bank, • Take a leading role in determining the composition and
BSEC and other regulatory authorities. Management’s primary structure of the Board which will involve regular assessment
responsibilities are to: of the:
• Manage the operation of the Bank safeguarding interest of a size of the Board,
customers and other stakeholders in compliance with the a quality of interaction, harmony and involvement of the
highest standards of ethics and integrity; Directors.
• Implement the policies and strategic direction established • Set the Board’s Agenda and plan Board Meetings.
by the Board;
• Chair all Board Meetings, directing debate towards
• Establish and maintain a strong system of internal controls; consensus.
• Ensure Bank’s compliance with applicable legal and • Ensure that the Board receives appropriate, accurate, timely
regulatory requirements. and clear information.
Roles and Responsibilities of the Board of Directors • Chair the AGM and other Shareholders’ Meetings to foster
The major roles and responsibilities of the Board, among others, effective dialogue with shareholders.
are to set the vision, mission and policies of the Bank and to • Ensure that the views of shareholders are communicated to
determine the goals, objectives and strategies to ensure efficient the Board as a whole.
utilization of the Bank’s resources. The roles and responsibilities
of the Board of Directors are outlined below (but not limited • Work with Chairman of Board Committees.
to) in compliance with Bangladesh Bank BRPD Circular No. 11 • Conduct (if required) on-site inspection of any bank-branch
dated 27 October 2013: or financing activities under the purview of the oversight
• Work planning and strategic management responsibilities of the Board.
• Lending and Risk Management Roles and Responsibilities of CEO, HoF, CS and
• Internal Control Management Head of ICC
• Human Resources Management and Development The Board of Directors of EBL clearly defines and approves the
respective roles, responsibilities and duties of Chief Executive
• Financial Management
Officer (CEO), Head of Finance (HoF), Company Secretary
• Formation of Supporting Committees (CS) and Head of Internal Control & Compliance (ICC).
To set out the following responsibilities of CEO, BRPD Circular The performance of the Board is appraised based on certain
Letter No. 18 dated 27 October 2013 issued by Bangladesh Bank parameters such as shareholder return, share price, return
and Corporate Governance Notification issued by BSEC on 07 on capital employed, earnings per share etc. of the bank. The
August 2012 has been taken into consideration. attendance of Directors and their active participation in the
meeting on various agenda is ensured in every Board meeting.
• In terms of financial, business and administrative authorities
The Board approves annual budget at the beginning of each
vested upon him by the BoD, the CEO shall discharge
year and monitors the status of the same on quarterly basis
his own responsibilities. He shall remain accountable for
to ensure achievement of the target. The Board’s performance
achievement of financial and business targets by means
is greatly dependent on the achievement (under or over) of
of business plan, efficient implementation and prudent
budgeted target. Besides, the performance reports of supporting
administrative and financial management.
committees of the Board are also placed in the Board meeting
• The CEO shall ensure compliance of the Bank Company Act through which the performances of the Board members are
1991 and other relevant laws and regulations in discharging regularly assessed.
routine functions of the bank.
Annual Evaluation of MD & CEO by the Board
• The CEO shall include clearly any violation from Bank
Company Act 1991 and/or other relevant laws and The Board of Directors of EBL clearly defines and approves
regulations in the “Memo” presented to the meeting of the the roles, responsibilities and duties of Chief Executive Officer
BoD or any other Committee (s) engaged by the BoD. (CEO). Based on these assigned responsibilities, BoD makes
annual evaluation of MD & CEO. Furthermore, the performance
• The CEO shall report to Bangladesh Bank of issues in evaluation of MD & CEO is done by the Board through various
violation of the Bank Company Act 1991 or of other laws/ reports featuring financial position and performance and:
regulations.
• Compliance status of various assignments given by the
• The recruitment and promotion of all staffs of the bank Board to CEO and his team from time to time.
except those in the two tiers below him shall rest on the
CEO. He shall act in such cases in accordance with the • Variance analysis of Budget vs. Actual result and steps taken
approved ‘people management manual’. by CEO to achieve the Budgeted target.
• The authority relating to transfer and disciplinary measures • Among the financial parameters, NPL ratio, Growth of
against the staff, except those at two tiers below the CEO, Loan & Deposit, Cost to Income Ratio, Loans write off and
shall rest on him. Besides, under the purview of the ‘people its recovery, Capital Adequacy Ratio, Credit to Deposit
management manual’ approved by the BoD, he shall Ratio etc. are the common ones.
nominate officers for training and other related issues. Training of Directors
Appointment of HoF, Head of ICC and CS Training of Directors includes providing training and
The Bank appointed a Head of Finance, a Head of Internal information on the latest update related to banking business
Control & Compliance and a Company Secretary as per the such as relevant laws, policy guidelines, circulars, rules and
policy of the Bank and other regulatory laws and regulations. regulations issued by the regulatory authorities; so that they
They are well conversant in the field of financial, regulatory and could effectively discharge the responsibilities as a Director of
corporate laws to carry out their assigned responsibilities. the Bank. Sometimes special discussion sessions are arranged
with the experts on highly technical and complex issues. They
Independence of Non-Executive Directors also participate in the programs and seminars organized by
various professional bodies at home and abroad on business,
All the Non-Executive Directors enjoy full freedom to carry
economic, technical, professional and corporate governance
out their coveted responsibilities. They attend Board meetings
issues.
regularly and participate in the deliberation and discussions
effectively. They actively involve in the matter of formulation Directors’ Knowledge and Expertise in Finance and
of general strategies of the Bank. But they do not participate in
Accounting
or interfere into the administrative or operational or routine
affairs of the Bank. However, they ensure confidentiality of the Two Directors in the Board obtained post-graduation major
Bank’s agenda papers, discussions at the Board/Committee in Accounting from the University of Dhaka having requisite
Meetings, Notes and Minutes. expertise in the field of accounting and finance. Other
Directors, majority of whom are either successful entrepreneurs
Annual Appraisal of the Board’s Performance or seasoned professionals, are also well conversant in the field
At AGM shareholders critically appraise the performance of the of business, economics and administration.
Board and evaluate financial position and performance of the
Directors’ Report on Compliance with Best
bank, its adequacy and effectiveness of internal control system
and overall governance mechanisms. The shareholders also ask Practices on Corporate Governance
questions and make queries to the BoD during AGM and the The status of compliance of corporate governance guidelines
Chairman of BoD gives a patient hearing and respondsto all issued by Bangladesh Bank has been presented in page no.
their queries. 87-92 and the guidelines issued by BSEC have been presented
in page no. 92-96. Hoda Vasi Chowdhury & Co., Chartered Audit Committee (AC)
Accountants, duly certified the compliance status of corporate
The Audit Committee of the Board carries out its functions based
governance guidelines and issued a report which is presented
on the Terms of Reference (ToR) approved by the Board and
in page no. 97.
is accountable to the Board of Directors of the Bank. To make
Vision, Mission and Strategy of the Bank the quorum of the AC meeting at least 01 (one) Independent
Director has to be present. The Company Secretary acts as the
• The vision and mission statement of the Bank approved secretary of the committee.
by the Board of Directors is presented in page no. 9 of this
report. The said statements are also disclosed in Bank’s • Appointment and Composition: In compliance with
website and other related publications. Bangladesh Bank BRPD Circular No.11dated 27 October
2013 and BSEC’s Corporate Governance Guidelines dated
• Strategic priorities which are time to time directed by the 07 August 2012, Audit Committee (AC) of EBL Board
Board have been presented in page no. 11 of this annual has been re-constituted by the BoD from time to time to
report. review and oversee company’s financial reporting, non-
• Our sector wise business objectives, strategies, priorities and financial corporate disclosures, internal control systems
future business outlooks have been elaborately described in and compliance to governing laws, rules and regulations
“Management Discussion and Analysis” section of this etc. independently. Details of AC members are stated in
report. page no. 13.
• Chairman of the AC: Chairman of the AC is an Independent
Board Committees and their Responsibilities Director who performs his duties with full freedom.
To ensure good governance in bank management, Bangladesh • Members are Non-Executive Directors: All members of
Bank issued a circular (BRPD Circular No. 11 dated 27 October the AC are Non-executive Directors. No Executive of the
2013) restricting banks to form more than three committees or Bank is eligible to become a member of the AC. Also, no
sub-committees of the Board. member of EC has been nominated as the member of the
To ensure proper accountability and transparency, EBL has AC.
three Board committees namely Executive Committee, Audit • Qualification of Members of AC: All members of
Committee and Risk Management Committee to oversee and the AC are financially literate and two members have
direct the operations, performance and strategic direction of post-graduation degree in Accounting and Business
the Bank. The composition of the said Board Committees is Administration respectively. Moreover, all members of the
presented in the page no. 13. AC have reasonable knowledge on banking business, its
operations, and risks involved in it.
Executive Committee (EC)
• Terms of Reference (ToR) of AC: The ToR of the AC has
• Appointment and Composition: In Compliance with
been framed in line with the provisions of BRPD Circular
Section 15B (2) of Bank Company Act 1991 (amended up to
No. 11 dated 27 October 2013, Corporate Governance
2013) and BRPD Circular No. 11 dated 27 October 2013, the
Guidelines issued by BESC on 07 August 2012, and
Board of Directors of EBL has re-constituted the Executive
other best practice corporate governance guidelines and
Committee (EC) of the Board in 2014 with four members standards. Some important roles and responsibilities of AC
(maximum limit is seven members). None of them are the as per ToR have been described in “Report of the Audit
members of Audit Committee of the Board. The Company Committee” section of this report.
Secretary acts as the secretary of the committee.
• Internal Control & Compliance Division’s Access to AC:
The EC is comprised of 3 (Three) Non–Executive Directors Heads of Internal Control & Compliance (ICC) and Internal
and Managing Director & CEO of the Bank. Details of EC Audit have direct access to the AC as and when required. In
members are stated in page no. 13. addition, the AC meets the Head of ICC and the Head of
• Meeting and Responsibilities of EC: The EC of a larger Internal Audit at least once in a year, without management
sized BoD usually acts as a proxy for full BoD; attends a being present, to discuss their remit and any issues arising
meeting with short notice and takes decisions to ensure from the internal audits carried out.
smooth flow of banking businesses. However, any decision • Objectives and Activities of the AC: The AC regularly
taken by the committee has to be subsequently ratified by reviews the internal control systems of the Bank and also
the full Board. reviews along with the management, the quarterly, half
Since the current size of the Board of EBL (11 members yearly and annual financial statements of the Bank before
including MD & CEO) is slim enough to hold two meetings submission to the Board for approval. The objectives and
in a month on a regular basis, there was no such urgent activities of the AC have been described in“Report of the
issue required for EC to deal with during 2016. Hence, no Audit Committee” section of this annual report.
EC meeting was held in 2016. • Meeting of the Audit Committee: The Audit Committee
of EBL held 11 (eleven) meetings in 2016 and had detailed
discussions and review session with the Head of ICC, Head No Remuneration Committee but Activities
of Internal Audit, External Auditors regarding their findings,
observations and suggestions with corrective measures on As the Bank is restricted (by Central Bank) to have more than
the related areas and on other issues of Bank affairs that three sub-committees of the Board, the Board oversees the
need improvement. The AC instructed the management to recruitment and remuneration process of the employees by
follow those suggestions and monitored accordingly from reviewing/approving the following:
time to time. 1. Human Resources (HR) Policies i.e. “People Management
The Minutes of the Audit Committee Meetings containing Manual” of the Bank.
various suggestions and recommendations to the 2. Recruitment, promotion and remuneration process of top
Management and the Board are placed to the Board for executives (Up to two-level below the rank of Managing
ratification on a regular basis. The major areas focused Director & CEO) as per Bangladesh Bank Circular (BRPD
by the AC during the year 2016 have been presented in Circular No.11 dated 27 October 2013).
“Report of the Audit Committee” section of this annual
3. Other than the above as mentioned in (2), all appointments,
report.
promotions and fixing remuneration are made by the
Risk Management Committee (RMC) Managing Director & CEO as authorized by the Board.
• Appointment and Composition: In Compliance with 4. Appointment of Management Consultants one-off basis
BRPD Circular No. 11 dated 27 October 2013, the Board for conducting periodic (usually once in every two years)
of Directors of EBL has reconstituted a three-member Salary Survey to determine EBL’s competitive position with
Risk Management Committee (RMC) of the Board in peer Banks in the industry. Based on the Survey Result,
2016 (maximum limit is five members). The RMC has Board approves required adjustments to existing benefit
been formed to minimize probable risks arisen during packages for the employees of the Bank.
implementation of Board approved policies, procedures
and strategies. The RMC is entrusted to examine and
Benefits provided to Directors and Managing
review whether management is properly working on Director
identification, management and mitigation of credit risk, According to the Circulars and Guidelines issued by Bangladesh
foreign exchange risk, internal control and compliance risk, Bank from time to time, banks in Bangladesh can only provide
money laundering risk, information and communication the following facilities to the Directors:
technology risk, operation risk, interest rate risk and
liquidity risk and keeping adequate provision and capital • Chairman: The Chairman of the Board of Directors may
against the said risks. be provided an office chamber, a private secretary, an office
assistant, a telephone in office, a full time car and a mobile
All three members of this RMC are Non–Executive phone to be used within country. The Chairman of EBL did
Directors of the Board and details of RMC members are not accept any support staff and private secretary from the
stated in page no. 13. bank.
• Roles and Responsibilities of RMC: It is the responsibility • Directors: Directors are entitled to fees and other benefits
of RMC to identify and assess risk of the bank and guide for attending the Board/support committee (EC/AC/RMC)
management to formulate action plans for minimizing/ meetings (The benefits provided to Directors of EBL have
controlling of risk. The committee shall review the been mentioned in Note 36 to the Financial Statements).
risk management policy and modify the same as per
requirement. Some important roles and responsibilities • Managing Director & CEO: Managing Director is paid
of RMC have been described in “Report of the Risk salary, allowances and other facilities according to his
Management Committee of the Board” section of this service contract approved by the Board and Bangladesh
report. Bank. (The benefits provided to MD & CEO of EBL have
been mentioned in Note 35 to the Financial Statements).
• Activities of RMC: Major activities of RMC in 2016 have
been described in “Report of the Risk Management The Bank (EBL) has fully complied with Bangladesh Bank
Committee of the Board” section of this report. Circulars and Guidelines.
• Meeting of the RMC: The committee is required to conduct Establishment and Review of Internal Control
at least four meetings in a year although it can be more as System
per requirement. The committee may call the CEO, Chief
Risk Officer (CRO) or any executive to attend the committee EBL has a sound system of internal control to safeguard
meeting. The RMC held 4 (Four) meetings during 2016 and stakeholders’ interest. The Board of Directors having ultimate
had detailed discussions and review session with the CRO responsibility of its operations has delegated to the Audit
regarding their findings, observations and recommendations Committee for review of the adequacy and effectiveness of the
on issues of bank affairs that need improvement. The major system of internal control.
areas focused by the RMC during 2016 have been presented A review of internal control system has been presented in
in “Report of the Risk Management Committee of the “Directors’ Report” of this report.
Board” section of this report.
Risk Management Circular No. 14 dated 25 June 2003. As on the reporting
date, the Bank had funded and non-funded exposures with
The Risk Management Division (RMD) of EBL is responsible
its subsidiaries, non-funded exposures to some current and
to oversee, monitor and report all risks in line with the risk
ex-directors and credit card limit to some of its Directors.
appetite set by the Risk Management Committee (RMC) of the
Besides, the Bank had procured some goods and services from
Board. The RMC of the Board reviews and monitors the overall
the entities of related party (ies) during 2016. Please refer to
risk management system of the Bank and updates to the Board
Annexure C1 of financial statements for details of related party
from time to time. Risk management functions are subject to
transactions.
continuous scrutiny of the Internal Control & Compliance
Division (ICCD) to ensure appropriateness and integrity of the Ethics and Compliance
risk management practices. • Code of Conduct and Ethical Guidelines: EBL has
The risk management system of EBL has been described in separate Code of Conduct and Ethical Guidelines for the
“Risk Management Report” section of this report. Also the Board and employees of the Bank. The basic premise of the
roles and responsibilities of RMC and major areas focused code of conduct is that each employee, while on the payroll
by RMC in 2016 have been presented in “Report of the Risk of EBL, shall place EBL ahead of his/her personal interest.
Management Committee of the Board” section of this report. The management relies on each of the employees to make
a judgment of what is right and proper in any particular
Appointment of External Auditors
situation.
The shareholders of EBL in the 24th AGM held on 19 May 2016
• Compliance of Code of Conduct and Ethical Guidelines:
appointed Rahman Rahman Huq, Chartered Accountants, as
The Board of Directors complies with all applicable laws
the statutory auditors for the year 2016.
and regulations of the land and with the Memorandum and
Services not provided by External Auditors Articles of Association of the Bank and the policies of the
In compliance with the provision 4 of BSEC guidelines, we Bank adopted by the Board from time to time.
declare that Rahman Rahman Huq, Chartered Accountants, All the employees are committed to adhere to the Code
was not engaged in any of the following services during of Conduct and are expected to demonstrate highest level
2016while conducting statutory audit: of ethical standards. They are also expected to undertake
• Appraisal or valuation services or fairness opinions. at all times to comply with or adhere to all applicable laws
and regulations of the country, policies and instructions
• Financial information system design and implementation.
of the Bank, wherever they operate. They are to maintain
• Book-keeping or other services related to accounting books and records with integrity and ensure accuracy and
records or financial statements. timeliness of all transactions. They must not share the
• Broker-dealer service, actuarial services or internal audit Bank’s plans, procedures, practices and activities considered
services. by the management to be proprietary and confidential. An
employee is discouraged to accept gift, benefit, hospitalities,
• Audit/certification services on compliance of corporate
and invitation to meals or offers for travel and lodging
governance guidelines issued by BSEC.
from our customers or persons intending to have business
• Any other service that the Audit Committee determines. dealings with the Bank.
No partner or employee of Rahman Rahman Huq, Chartered • Effective Anti-Money Laundering and Anti-terrorism
Accountants, possesses any share of EBL during the tenure of Program: The Bank has established a separate Central
their audit assignment at EBL. Compliance Unit (CCU) and appointed a senior official
Highlights on Central Bank Inspections as Head of CCU to ensure compliance of Anti-Money
Laundering Prevention Act and Anti-Terrorism Act. The
Like every year, a comprehensive inspection was carried
AML Risk Management and Assessment Guideline of the
out by Bangladesh Bank in 2016 covering Head Office and
Bank has been approved by Board of Directors.
some branches and departments of EBL. Bangladesh Bank
has 28 Inspection reports and their follow ups during 2016. The CCU nominates Department Anti-Money Laundering
Major Findings of the inspection were discussed in a meeting Compliance Officer (DAMLCO) and Branch Anti-Money
participated by Bangladesh Bank representatives, the Board Laundering Compliance Officer (BAMLCO) and guides
and related management personnel of the Bank. The Board them about their day to day compliance activities.
took the observations with utmost importance and instructed The CCU arranges DAMLCO and BAMLCO conference
management to comply with Bangladesh Bank suggestions for and train up bank employees through in-house experts and
further improvement. also hires experts from BB. In line with that, CCU arranged
Training for 1,035 employees to raise their awareness in
Related Party Transactions
2016.
The Bank in its ordinary course of business undertook financial
• Whistle blowing and Anti-Fraud Program: The Audit
transactions with some entities or persons that fall within the
Committee of the Board reviews the Bank’s arrangements
definition of ‘Related Party’ as contained in BAS 24 (Related
for its employees to raise concerns, in confidence, about
Party Disclosures) and relevant provisions of Bank Company
possible wrongdoing in financial reporting or other matters.
Act 1991 (amended up to 2013) and Bangladesh Bank BRPD
The Audit Committee ensures that these arrangements to time for the shareholders and other stakeholders of the
allow proportionate and independent investigation of Bank.
such matters and appropriate follow up action. The Audit • Policy on ensuring participation of shareholders at
Committee also reviews the Bank’s procedures for detection AGM: To ensure effective and efficient participation of
and prevention of fraud. shareholders in AGM, EBL publishes notice of AGM in
The Internal Control & Compliance Division (ICCD) of the daily newspapers with necessary details within reasonable
Bank always engage in examination of whether any fraud- time-frame. The AGM normally takes place in a well-
forgery or irregularities is going on in the Bank. The ICCD known place and at convenient time. Annual Reports are
also conducts special audit or investigations as instructed circulated as per the provision of Companies Act 1994, so
by the Board or Audit Committee of the Bank. The that shareholders would get sufficient time to go through
ICCD submits reports upon the observations they detect the report and freely provide their valuable comments and
throughout their audit to the Audit Committee at a regular suggestions in the AGM.
interval.
The Glimpses of the 24th AGM have been presented in
Human Capital “Stakeholders Information” section of this annual report.
Employee first is the bracing motto of EBL. We believe that • Redressal of shareholders complaints: Any complaint,
the source of our competitive advantage lay deep inside our received at AGM or throughout the year, related to transfer
company, in our people. Our core brand has always been our and transmission of shares, non-receipt of Annual Reports,
employees, appreciated for their passion to perform. For us and dividends timely and other share related matters is
employees are the best brand. We do not offer our employees a resolved lawfully in time.
job, we offer them a career. In 2012 our HR policy and practices The Company Secretary of EBL plays the role as a Chief
got international recognition when we were awarded the
Compliance Officer in handling any such issue related to
Asia’s Best Employer Brand Award at World HRD Congress in
our shareholders, investors etc.
Singapore. Our Human Resources Division is also the first in
Bangladesh to achieve ISO certification for its commitment to Environmental and Social Obligations
quality HR Practice in People Management. We believe that every small “GREEN” step taken today would
The details discussion on the bank’s “Human Capital”has been go a long way in building a greener future. As an environment
presented in page 173-177 of this annual report. responsive Bank we initiated Go Green campaign. EBL is the
first Bank to claim refinance from the Central Bank for carbon
Communication with stakeholders
credits. A detailed description regarding environmental and
• Communication with shareholders: The Share Department social obligation has been presented in “Sustainability Report”
(which is under the Board Secretariat) of the Bank plays and “Corporate Social Responsibility” sections of this Annual
an instrumental role to make effective communication Report.
with its shareholders and other stakeholders. Shareholders
and other stakeholders of the Bank may contact to this Management committees and their responsibilities
Department during office hour for any sort of information In an effective Corporate Governance structure, Bank
and queries. Common services include but not limited to management has a collective mandate under the leadership of
allow or rejection of transfer or transmission of shares, issue MD & CEO to carry out daily operations to the best interest
of duplicate certificates, allotment of shares issued from of the shareholders. Besides conventional segregation of
time to time, opening and operation of bank accounts for functional departments, EBL has some designated committees
payment of dividend, redemption of paper shares and the entrusted with specific objectives. The composition of all these
listing of securities on stock exchanges etc. Furthermore, committees is presented in the “Management Committees”
EBL provides updated information in its website from time section of this annual report.
The Management Committee (MANCOM) • Review of Bank’s risk appetites and recommend necessary
changes to retain Bank’s exposure within the acceptable
MANCOM is the highest decision and policy making authority level of risks or risk appetites.
of the management comprising the CEO and different business
and support unit heads. The major roles and responsibilities of • Endorse portfolio objectives in line with Bank’s agreed risk
MANCOM are as follows: appetites, and recommend tolerance limits/ benchmarks for
each type of risk.
• Setting suitable strategies for the Bank as well as for business
segments, guiding and monitoring for effective discharge of • Assist development of effective and efficient information
management responsibilities. system/MIS inflow process and data management
capabilities to support the risk management functions of
• Strategic and tactical decisions relating to business, credit, the bank.
operations, administration, HR, internal and financial
control and compliance etc. Asset Liability Committee (ALCO)
• Analysis of business and financial performance of the Bank. ALCO of EBL is dedicated to oversee the asset-liability
• Review and discussion of policies and procedures of the position, interest rate risk, liquidity risk, investment portfolio
Bank and make changes if necessary before taking to the composition and compliance with key ALM ratios. ALCO is
Board (if needed). also engaged in setting strategies and revamping previously
taken strategies to cope with current & future market scenario.
• Finalize periodic (usually once in a year) employee The major roles and responsibilities of ALCO are as follows:
performance appraisal and promotions.
• Reviewing balance sheet movements and taking measures
• Discuss and approve Budget before forwarding to Board. for sound balance sheet management.
• Consider and propose innovative projects, products and • Forecasting interest rate and taking suitable strategies
services as well as management methodology and business accordingly.
strategies to the Board of Directors (if needed).
• Measuring liquidity of the Bank in various time buckets
• Acting Managing Director can preside over the MANCOM and taking strategic and proactive actions to meet the
meeting in absence of the MD. requirements.
Expanded Management Team (EMT) • Formulating Fund Transfer Pricing Policy and measuring
business unit and customer wise profitability.
Expanded Management Team (EMT) is a platform to enhance
leadership capability of the potential individuals to drive • Monitoring status of ALM ratios (LCR, NSFR, MCO etc.)
business results. The team is represented by member(s) from and taking steps for compliance with these ratios.
every division and is accountable to Management Committee • Monitoring the interest rate risk of the Bank and taking
for its deliverables. Chairman of this EMT is a MANCOM actions to keep the interest rate gap at the desired level.
member by default who acts as a bridge between EMT and
MANCOM. EMT comprises mid-level managers (25 members • Measuring overall risk appetite of the Bank.
at present) from cross sections nominated by their respective • Monitoring the movement of macro variables and yield
divisional heads on yearly basis. The scope of this team is to curve shift and taking strategy for short, mid and long term
excel the projects and initiatives approved by the MANCOM. interest rate risk management.
Bank Risk Management Committee (BRMC) • Keeping the balance sheet mix at desired level for Main
Following BB instructions (DOS EW 1164/14 EBL/2009- Operation and OBU.
449 dated 10 June 2009 and DOS EW 1164/14 EBL/2009- • Measuring and monitoring concentration risk,
590 dated 24 September 2009), the Bank formed a separate diversification and product profitability.
risk management committee named ‘Bank Risk Management
Committee (BRMC)’ to ensure proper and timely identification, Purchase Committee (PC)
measurement and mitigation of risks exposed by the Bank in The five-member Purchase Committee (PC) consisting
a comprehensive way. The major roles and responsibilities of members from Administration, Operations, Finance, IT and
BRMC are as follows: Communication, plays an instrumental role in the procurement
• Review of organizational structure and functions of all procedure of the Bank. The main objective of this committee
individuals involved in risk taking as well as managing. is to ensure transparency in procurement activity seeking
‘value for money’ in each deal made. Formed as per the Board
• Review and recommend suitable risk assessment and approved ‘Procurement and Disposal Manual’, the PC is mainly
management policies, methodologies, guidelines, and entrusted with the followings:
procedures in line with Bangladesh Bank guidelines for
identification, measurement and monitoring of risks. • This committee recommends the lists of vendors for annual
enlistment after thorough investigation of submitted
documents and physical visit of vendors’ facilities (if Officer, all Business Heads, Head of CRM and Head of Finance.
required) to the Managing Director & CEO for final However, MD & CEO can nominate any other executive in the
approval. committee. The major roles and responsibilities of Credit Risk
Management Committee are as follows:
• As per Procurement and Disposal Manual, sealed quotations
are opened by the PC which recommends the vendors • Review of bank’s credit risk appetite, tolerance and strategy
considering price and quality of the goods and services. considering current and prospective macroeconomic and
business environment.
• In case of large procurement such as renovation of branches,
PC opens the sealed quotations in front of vendors and • Review of bank’s Credit Risk Management policies and
declares the name of winning vendor. This practice has procedures.
increased competitiveness among vendors which resulted
• Review and monitor effectiveness and application of Credit
in cost effectiveness in procurement of goods and services
Risk Management Policy related standards and procedures
which ultimately increased the value to all stakeholders.
and the control environment with respect to credit decisions.
BASEL Unit • Monitor credit risk on a bank wide basis and ensure
In compliance with Bangladesh Bank letter no. compliance of the limits approved by the Board of Directors
DOS(CAMS)1157/01(II)-A-2015-9344 dated 25 June 2015, or any Board Committee.
EBL Board of Directors in its 565th meeting held on 21 October • Review of prudential limits on large credit exposure,
2015 approved the formation of ‘BASEL Unit’ with a ‘Working standards for loan collateral, credit concentration, loan
Team’ in order to strengthen BASEL implementation activities pricing, early alert system, monitoring and evaluation of
leading to adopting a better capital management and risk relationship techniques.
culture. Accordingly as per outline provided by Bangladesh
Bank, BASEL Unit was formed comprising six personnel from • Review and oversee the development in loan loss provision
Risk, ICCD, IT, Treasury, Credit and Finance & Accounts policy and assess appropriateness and adequacy of such
Division and the working team comprising four personnel policies in line with the credit risk embedded in EBL
from Finance, Risk and Treasury functions. loan portfolio; while compliance of minimum regulatory
requirement is to be ensured.
Terms of Reference (TOR) of BASEL Unit and Working Team
are as follows: • Ensure regulatory and legal compliance in all aspects of
credit operations.
• Implementation of BASEL Guidelines as per requirements
of Bangladesh Bank from time to time. These regulatory • Review bank’s problem loan management process and
requirements will be the minimum standards to be developments in delinquent portfolio.
established. • Investigate any classified loan relationship and to
• Coordination of functions related to risk review process recommend accountability report, if such responsibility is
and capital planning. assigned by the Board or MD & CEO on case to case basis.
• Oversee the adequacy of risk governance framework to • To monitor collection and recovery action for Stand Alone/
meet minimum requirements under BASEL guidelines Single Product Lending through quarterly review of reports.
applicable in the country. • To review provisions and releases taken and potential
• To attend Quantitative Impact Study (QIS) and provisions and releases.
accountability for the compliance of BASEL Accords.
Cost Olympic Committee
• Arrangement of adequate training for related employees.
The Cost Olympic Committee (COC) was formed on 07
• Must meet at least quarterly to monitor BASEL January 2014 to steer rationalization of costs across the Bank.
implementation. It’s a supervisory committee entrusted to identify ‘good cost and
bad cost’ and suggests eliminate the bad ones. The committee
• Any other activity required to comply with Bangladesh
submitsa yearly “Action Plans” to MD & CEO highlighting the
Bank and other regulatory requirement.
probable areas of improvement and cost saving associated with
• If required, MD & CEO may include more members in the actions.
BASEL Unit/Working Team.
With an aim of raising mass awareness on cost rationalization
Credit Risk Management Committee and build the right attitude in ensuring ‘value for money’ while
spending for anything, COC organized first ever “Cost Olympic
The nine-member Credit Risk Management Committee has Conference” on 26 November 2016. COC invited and shared
been formed under the requirements of Core Risk Guideline ideas and thoughts with leaders who are capable of adding
on Credit of Bangladesh Bank for overall supervision of the values from their experiences and disseminate the same to
credit risk of EBL including review of underwriting standards, their teams to apply those in their day to day activities. Senior
lending practices, collection process and problem loan Officials from Chittagong zone also participated in the half day
management. The members of the Committee are Chief Risk program through video conference.
Since its inception, COC has been able to save more than BDT • Support and advice departments and branches in complying
6 crore directly or indirectly. COC is continuously working to with their various regulatory and other compliance issues as
contribute more in coming days. required.
Internal Controls: the watchdog of transparency • Respond to various queries from different authorities such as
and accountability Bangladesh Bank, Tax Authority, Ministry of Finance, Anti-
Corruption Commission, CID, Police, Central Intelligence
A sound control environment and suitable mechanism greatly Cell etc. regarding various customer information and
assist an organization toidentify, measure, monitor and mitigate transactions and activities and investigation of different
any material risk. Internal Control and Compliance Division cases.
(ICCD) of EBL continually recognizes and assesses all the
material risks that could distract the banking operations from • Ensure accurate, structured and timely reporting to different
reaching its desired outcome. It ensures reliable financial and entities as per requirement.
managerial information that promote better strategic decision • Follow up of Bank’s regular and ad hoc submission of
for the Bank. ICCD ensures compliance by abiding with laws returns/reports/queries to Bangladesh Bank and other
and regulations, policies and procedures issued by both the regulatory bodies.
bank management and the regulatory bodies.
• Checking whether the appropriate policies include a. top
ICCD acts as a watchdog to ensure safe, sound and compliant level review, b. appropriate activity controls for different
operations of the Bank. It keeps the management and Board
departments, c. appropriate segregation of duties (people
informed (where necessary) with any relevant update which
are not assigned with conflicting responsibilities).
is not routinely covered by financial reporting and other non-
financial disclosures. • Review of Policies and Guidelines of the Bank.
As per the ‘Guidelines on Internal Control & Compliance in • Arrange training and workshop on Anti Money Laundering
Banks’ issued by Bangladesh Bank vide BRPD Circular No. as a “Lead Bank”.
06 dated 04 September 2016, the Head of ICCD is reporting
• Organize trainings on policies, procedures and internal
his/her activities and findings to the Senior Management.
control system to the employees of the Bank.
However, the Head of Audit, although being a part of ICCD
administratively, is reporting directly to the Audit Committee Monitoring Unit: This unit is dedicated to prevent and
of the Board and will be responsible to the Audit Committee of minimize the risk of loss arising from inadequate and/or
the Board. ineffective internal process, people and system. Monitoring
unit institutes the monitoring related strategies based on
Depending on the size and complexity of operations of the
Bank ICCD of EBL comprises of four units namely: Monitoring Bangladesh Bank guidelines and existing management policies,
Unit, Compliance Unit, Audit Unit and Legal Unit. procedures, tools and techniques. It also collects relevant data,
information, and reports and analyzes them to identify and
Compliance Unit: The compliance unit is responsible for assess operational risks of the bank and select course of action
ensuring compliance with applicable laws, regulations, policy to mitigate them.
and guidelines of relevant regulatory authorities (BB, NBR,
BSEC etc.) by concerned employees/departments of EBL. Monitoring Unit normally uses the following five steps to
The compliance team maintains liaison with the regulators conduct their activities:
at all levels and notifies relevant internal units/departments a Identification of operation risk through analysis of work
regarding any regulatory changes. This unit also develops flow and processes: Key/high risks items are identified
various compliance policy and guidelines and takes necessary and monitored as part of daily activities.
steps to keep people aware across EBL by arranging suitable
training programs. a Assessment of risk identified with its severity and
probability of occurrence: Escalated based on severity in
Compliance unit performs a diverse range of compliance and a timely manner to the appropriate level and addressed
regulatory functions. Some major functions of this unit are as immediately.
follows:
a Corrective actions taken to mitigate the identified risks
• Ensure regulatory compliance enforced by different and malpractices through control choices and control
regulatory bodies like the central bank, tax authority,
decisions.
Ministry of Finance, Law enforcing agencies and other
regulators. a Continuous monitoring, follow-up and control of
operation risks.
• Ensure compliance with the suggestions and instructions
made by Bangladesh Bank based on comprehensive and a Proactively introduce various tools, techniques and
special inspections. reports to recurrence the operation risks.
In case of any lapses/irregularities found, Monitoring Unit internal audit staff performs their duties with objectivity and
takes appropriate corrective measures within the respective impartiality.
business/operation areas. If they find any significant operational
Results and status of internal audit in 2016: In 2016, 81
lapses, they recommend the issue to the higher management
branches (77 branches in 2015) and 60 divisions/departments/
(MANCOM/BRMC) through Head of ICC for immediate
units (55 divisions/departments/units in 2015) were audited by
resolution of the issue. Some major tools used by this unit are
the audit unit of the bank as per audit plan. After finalization of
as follows:
audit report, audit rating is calculated based on audit findings
• Customized frameworks for business and support functions and EBL Audit Policy and Guidelines and this rating is informed
to identify their major operational risks and mitigation to the related management with audit report.
plans.
Major audit findings include but not limited to different types
• Branch/Departmental Control Function Checklist of operational lapses due to human error, non-compliance of
(DCFCL), End Of Day (EOD) and Business Object (BO) internal policies or circulars, lack of thorough knowledge about
report. relevant laws and regulations etc. The deficiencies identified
• Loan Documentation Check list (LDCL). during the audits are notified to the appropriate level (business
heads) and significant audit findings are reported to the
• Prime Risk Indicator (PRI). Managing Director & CEO level and to the Audit Committee
• Quarterly Operations Report (QOR). as well.
• Spot check/surprise visit in branches and departments. Legal Unit: Legal Unit of ICCD ensures the legal compliance of
the bank ensuring legal support to all branches and departments
• Continuous monitoring and follow-up in Trade Ops/ of EBL. It performs vetting of various agreements including
Treasury/SD/Cards etc. lease agreements and contracts for Business and Support
• Incident Reports from various areas etc. Functions of the Bank.
Audit Unit: Audit unit of EBL is applying risk based internal BB guidelines for Corporate Governance: Our
audit methodology for doing their audit functions. Under Compliance Status
risk-based internal audit, the focus shifts from the full-scale
transaction testing to risk identification, prioritization of audit To ensure good governance i.e. corporate governance in bank
areas and allocation of audit resources in accordance with management, Bangladesh Bank (BB) issued three Circulars in
the risk assessment. The audit team of the ICCD assesses the 2013 covering three broad areas as follows:
effectiveness of the internal control system of the bank through 1. BRPD Circular No.11 dated 27 October 2013: Formation
periodic internal audit. and responsibilities of Board of Directors (BoD).
Annual audit plan is prepared by considering all risk areas 2. BRPD Circular Letter No. 18 dated 27 October 2013:
and their prioritization based on the level and directions of Appointment and responsibilities of Chief Executive
risks. This annual audit plan is approved by the bank’s senior Officer (CEO).
management with concurrence of the Audit Committee of the
Board before starting of New Year. 3. BRPD Circular Letter No. 19 dated 27 October 2013:
Contractual appointment of Advisor and Consultant.
The internal audit unit of EBL is independent from the internal
control process in order to avoid any conflict of interest and The summary of the BB guidelines and EBL’s compliance
it is given appropriate standing within the bank to carry out thereto are presented below:
its assignments. The management of EBL ensures that the
1. Formation and responsibilities of Board of Directors (BoD)
Sl.
Particulars Compliance Status
No.
1 Formation of BoD: Prior approval from BB to be taken before appointment of new Directors,
as well as dismissal, termination or removal of any Director from the post. Qualification
Complied
and competency of Directors, maximum number of Directors of the Board, appointment of
Independent Directors, appointment of maximum 02 (two) members from a family as Director.
1.1 Appointment of New Directors: Every bank company, other than specialized banks, at the
time of taking prior approval from BB while appointing Directors should furnish the following
information along with the application:
a. Personal information of the nominated person Complied
b. Declaration of nominated person Complied
c. Declaration for confidentiality by the nominated person Complied
d. In case of independent director, the approval letter from BSEC Complied
e. CIB report of the nominated person Complied
f. Updated list of Directors Complied
1.2 Vacancy of office of a Director
(a) The office of a Director shall be vacated as per the provision of Section 108(1) of Companies Act
1994. Besides, provision of Section17 of Bank Company Act 1991, providing false declaration at No such case
the time of appointment or observing shortfall of qualification as a Director.
(b) If the office of a Director is vacated as per Section 17 of Bank Company Act 1991, s/he will not
be eligible to become Director of that bank company or any other bank company or financial
institutions within one year from the date of repayment of the total dues to the bank. The dues
No such incident
can be adjusted with the shares held by the Director in that bank company and he cannot
transfer his shares of that bank company until he repays his all the liabilities of that bank
company or financial institutions.
(c) BB can remove Directors or Chairman of a bank company other than the state-owned banks for
doing any activity that is detrimental to the interest of the banks depositors or against the public
No such instance as yet
interest under Section 46 and can also dissolve the Board of a bank company under Section 47
of Bank Company Act 1991.
1.3 Removal of Directors from office: With the prior approval of Bangladesh Bank, any Director
of a bank company other than specialized banks can be removed from his office for the reasons
specified in its Articles of Association. The reason and grounds of the dismissal/removal and No such instance as yet
the copy of such decision taken by BoD and a list of Directors shall be submitted to Bangladesh
Bank. Such removal shall be effective from the date of BB’s approval.
1.4 Appointment of Alternate Director: An alternate director can be appointed to act for a director
No such Director in
during his absence for a continuous period of not less than three months from Bangladesh by
EBL
fulfilling instructions mentioned in sub-clauses (a) to (d).
2 Director from Depositors: As per Bank Company Act 1991 (amended in 2013) appointment
of Directors from depositors is no longer required. But, in compliance with the provision of Complied.
section 15(9) of Bank Company Act 1991 (amended up to 2013), bank company may consider No Depositor Director
the tenure of existing Directors from depositors or may appoint them as the Independent in EBL
Director of the company.
3 Information regarding Directors: Banks are advised to take the following steps regarding
directors information:
(a) Every bank should keep an updated list of bank directors. Complied
(b) Banks should send a directors' list to other banks or financial institutions immediately after the
Complied
appointment or release of director.
(c) Banks should display a list of directors on the website and update it on a regular basis. Complied
4 Responsibilities of the Board of Directors (BoD)
4.1 Responsibilities and Authorities of the BoD:
(a) Work planning and strategic management
(i) The BoD shall determine the objectives and goals and to this end shall chalk out strategies
Complied
and work plans on annual basis. It shall analyze/monitor at quarterly rests the development of
implementation of work plans.
Sl.
No.
(ii) The BoD shall have its analytical review presented in the Annual Report as regard to
success/failure in achieving the business and other targets as set out in its annual work plan and
shall apprise the shareholders of its opinions/recommendations on future plans and strategies. Complied
It shall set the Key Performance Indicators (KPIs) for the CEO and executives immediate two
tiers below the CEO and have it evaluated at times.
(b) Loan and Risk Management:
(i) The policies, procedures, strategies, etc. in respect of appraisal of loan/investment proposal,
sanction, disbursement, recovery, re-scheduling and write-off thereof shall be made with the
BoD’s approval under the purview of the existing laws, rules and regulations. The BoD shall Complied
specifically distribute the power of sanction of loan/investment and such distribution should
desirably be made among the CEO and his subordinate executives as much as possible. No
director, however, shall interfere, directly or indirectly, into the process of loan approval.
(ii)The board shall frame policies for risk management and get them complied with and
shall monitor the compliance at quarterly rests and review the concerned report of the risk
Complied
management team and shall compile in the minutes of the board meeting. The BoD shall
monitor the compliance of the guidelines of BB regarding key risk management.
(c) Internal Control Management:
The Board shall be vigilant on the internal control system of the bank in order to attain
and maintain satisfactory health or grade of its loan/investment portfolio. The board will
establish such an internal control system so that the internal audit process can be conducted Complied
independently from the management. It shall review at quarterly rests the reports submitted
by its audit committee regarding the compliance of recommendations made in internal and
external audit reports and the BB inspection reports.
(d) Human Resources (HR) Management and Development:
(i) Policies relating to recruitment, promotion, transfer, disciplinary and punitive measures, Complied.
human resources development etc. and service rules shall be framed and approved by the BoD.
The chairman or the directors shall in no way involve themselves and interfere into or influence EBL BoD approves
over any administrative affairs including recruitment, promotion, transfer and disciplinary HR policy from
measures as executed under the set service rules. No member of the BoD shall be included time to time which
in the selection committees for recruitment and promotion to different levels. Recruitment, guides all actions or
promotion, transfer and punishment of the executives immediate two tiers below the CEO decisions related to HR
shall, however, rest upon the BoD. Such recruitment and promotion shall have to be carried out management of EBL.
complying with the service rules i.e., policies for recruitment and promotion.
(ii)The BoD shall place special attention to the development of skills set of bank’s staff in
different fields of its business activities including prudent appraisal of loan/investment
proposals, and to the adoption of modern electronic and information technologies, and the Complied
introduction of effective Management Information System (MIS). The BoD shall get these
programs incorporated in its annual work plan.
(iii)The BoD will compose Code of Ethics for every tier of employees and they will follow it
Complied
properly. The BoD will promote healthy code of conducts for developing a compliance culture.
(e) Financial Management:
(i) The annual budget and the statutory financial statements will be prepared with the approval
of the BoD. It will at quarterly rests review/monitor the positions in respect of bank’s income, Complied
expenditure, liquidity, non-performing assets, capital base and adequacy, maintenance of loan
loss provision and steps taken for recovery of defaulted loans including legal measures.
(ii)The BoD will frame the policies and procedures for bank’s purchase and procurement
activities and shall accordingly approve the distribution of power for making such expenditures. Complied.
The maximum possible delegation of such power shall rest on the CEO and his subordinates. EBL follows a Board
The decision on matters relating to infrastructure development and purchase of land, building, approved‘Procurement
vehicles etc. for the purpose of bank’s business shall, however, be taken with the approval of the and disposal policy’.
BoD.
(iii)The BoD will review whether an Asset-Liability Committee (ALCO) has been formed and
Complied
it is working according to BB guidelines.
Sl.
No.
(f) Appointment of Chief Executive Officer (CEO): In order to strengthen the financial base of
the bank and obtain confidence of the depositors, one of the major responsibilities of the BoD is
Complied
to appoint an honest, efficient, experienced and suitable CEO or Managing Director. The BoD
will appoint a competent CEO for the bank with the approval of BB.
(g) Other responsibilities of the BoD: In accordance to BB Guidelines issued from time to time. The BoD fulfills any
such requirement as
and when required by
BB.
4.2 Meetings of the Board of Directors: Board of Directors may meet once or more than once in
a month upon necessity and shall meet at least once in every three months. Excessive meetings Complied.
are discouraged.
4.3 Responsibilities of the Chairman of the BoD:
(a) As the Chairman of the BoD or Chairman of any committee formed by the BoD or any director
does not personally possess the jurisdiction to apply policy making or executive authority, he/
Complied
she shall not participate in or interfere into the administrative or operational and routine affairs
of the bank.
(b) The Chairman may conduct on-site inspection of any bank branch or financing activities
under the purview of the oversight responsibilities of the BoD. He may call for any information
relating to bank’s operation or ask for investigation into any such affairs; he may submit such
information or investigation report to the meeting of the BoD or the executive committee and Complied
if deemed necessary, with the approval of the BoD, he shall effect necessary action thereon in
accordance with the set rules through the CEO. However any complaint against the CEO shall
have to be apprised to BB through the BoD along with the statement of the CEO.
(c) The Chairman may be offered an office room, a personal secretary/assistant, a peon/MLSS, a
telephone at the office, a mobile phone usable inside the country and a vehicle in the business Complied
interest of the bank subject to the approval of the BoD.
5 Formation of Supportive Committees of the Board: The BoD of every Bank Company can
form only three supporting committees of the BoD i.e. Executive Committee (EC), Audit Complied
Committee (AC) and Risk Management Committee (RMC).
5.1 Executive Committee (EC): ECis to be formed for taking decision on urgent and day-to-day or
routine activities between the intervals of two BoD meetings. The EC will perform according to
the terms of reference set by the BoD.
The EC will be formed with maximum of 07 (seven) members for a period of 03 (three) years.
The Chairman of the BoD can also be the member of the EC. The company secretary of the
bank shall act as the secretary of the EC. EC members, besides being honest and sincere, should
have reasonable knowledge on banking business, its operations and risk management and be Complied
capable of making valuable and effective contributions in the functioning of the Committee.
The Committee shall discharge responsibilities and take decision on the matters as instructed
by the BoD except discharging of those responsibilities and taking decisions that are specifically
assigned to the full BoD by the Bank Company Act 1991 or other related laws and regulations.
The decisions taken by the Committee shall be ratified in the next BoD meeting. Upon necessity
the Committee can call meeting at any time. The Committee may invite CEO, Chief Risk Officer
or any executive to attend the Committee meeting.
5.2 Audit Committee (AC): The AC should have maximum five members and two of them shall
be Independent Directors. It should be constituted of such members who are not members of
the EC of the BoD. The members of the Committee may be nominated for three years and the Complied
company secretary of the bank shall act as the secretary of the Committee. Please see ‘Report
of the Audit Committee’ for details.
Sl.
No.
5.3 Risk Management Committee (RMC): The RMC is to be formed to mitigate impending
risks which could be arisen during implementation of BoD approved policies, procedures and
strategies. This committee is entrusted to examine and review whether management is properly
working on identifying and mitigation of credit risk, foreign exchange risk, internal control
and compliance risk, money laundering risk, information and communication technology risk,
operation risk, interest rate risk and liquidity risk and keeping adequate capital and provision
against the risks identified.
The RMC is to be formed with maximum five members who will be appointed for 03 (three) Complied
years. Each member should be capable of making valuable and effective contributions in the
functioning of the Committee. The company secretary of the bank shall act as the secretary of
the Committee. RMC shall review the risk management policy and guidelines of the bank at
least once in a year, make necessary modifications as per requirement and submit the same to
the BoD for approval. Besides, lending limits and other limits should be reviewed at least once
in a year and should be amended, if necessary. Please see ‘Report of the Risk Management
Committee of the Board’ for details.
6 Training of the Directors: The Directors of the Board will acquire appropriate knowledge of
the banking laws and other relevant laws, rules and regulations to effectively discharge the Complied
responsibilities as a Director of the bank.
7. Intimation of the Circular to the Board and related persons by CEO: The CEO will inform
Complied
about this Circular to the directors and other related persons.
2. Appointment and responsibilities of Chief Executive Officer (CEO)
Sl.
No.
A Rules and regulations for appointment of the CEO
1 Moral Integrity: In case of appointment to the post of CEO, satisfaction in respect of the
concerned person should be ensured to the effects that:
a) He has not been convicted by any Criminal Court of Law.
b) He has not been punished for violating any rules, regulations or procedures/ norms set by Complied
any regulatory authority.
c) He was not associated with any such company/organization; registration or license of which
has been cancelled.
2 Experience and Suitability:
a) For appointment as a CEO, the concerned person must have experience in banking profession
for at least 15 (fifteen) years as an active officer and at least 02 (two) years’ experience in a
post immediate below the CEO of a bank.
b) He must have a Master’s degree at minimum from any recognized university. Higher academic
education in the field of Economics, Banking and Finance or Business Administration will
Complied
be treated as additional qualification for the concerned person.
c) In respect of service, the concerned person should have excellent track record of performance.
d) Satisfaction should be ensured that the concerned person was not dismissed from service
when he was chairman/director/official of any company.
e) Any director of any bank or financial institution or any person who has business interest in
the concerned bank will not be eligible for appointment to the post of the CEO.
3 Transparency and financial integrity: Before making appointment as a CEO, satisfaction
should be ensured to the effects that:
a. The concerned person was not involved in any illegal activity while performing duties in his
own or banking profession.
Complied
b. He has not deferred payment to creditors or has not compromised with his creditors to be
relieved from debts or he is not a loan defaulter.
c. He is not a tax defaulter.
d. He has never been adjudicated a bankrupt by the Court.
4 Age Limit: No person crossing the age of 65 years shall hold the post of CEO of a bank. Complied
Sl.
No.
5 Tenure: The tenure of the CEO shall not be less than 03 (three) years, which is renewable. If the
candidate has less than 3 years left to attain 65 years, he/she can be appointed for that shorter Complied
period.
6 Guidelines in fixing the salary and allowances: Banks are required to follow the guidelines
stated below while determining the salary and allowances of the CEO and submitting such
proposal to BB:
a. In fixing the salary and allowances of the CEO, financial condition, scope of operation,
business-volume and earning capacity of the bank; qualifications, achievement of the
candidate in the past, age and experience and the remuneration paid to the persons
occupying same position in the peer banks shall have to be taken into consideration.
b. Total salary shall be comprised of direct salary covering 'Basic Salary' and 'House Rent' and
allowances as 'Others'. The allowances (e.g., provident fund, utility bill, leave-fare assistance)
in 'Others' head should be specified in amount/ceiling. Besides, other facilities (e.g., car,
fuel, driver etc.), as far as possible, shall have to be converted in the monetary value and thus
determining monthly total salary, it shall have to be mentioned in the proposal submitted
to BB. In the proposal, Basic Salary, House Rent, Festival Allowance, other allowances and Complied
other facilities shall have to be specified in Taka amount.
c. Without improving the bank's major financial indicator like- CAMELS, annual salary
increment will not be payable.
d. Terms of salary-allowances and other facilities as specified in the terms and conditions of
appointment cannot be changed during the tenure. In case of renewal, proposal may be
made for re-fixation of the salary considering the work performance of the current CEO.
e. The CEO so appointed shall not get any other direct or indirect facilities (e.g., dividend,
commission, club expense, etc.) other than the salary-allowances and other facilities as
enumerated in clause (b) above.
f. The bank shall not pay any income tax for the CEO, i.e., the CEO so appointed shall have
to pay it.
7 Incentive Bonus: The CEO will get incentive bonus subject to paying incentive bonus to all
executives/officers/workers of the bank and the said bonus amount will not exceed BDT 1 Complied
million in a year.
8 Honorarium for attending the Board Meeting: Being a salaried executive, CEO will not get
Complied
any honorarium for attending the Board meeting or Board formed Committee meeting.
9 Evaluation Report: For reappointment of the CEO, the Chairman of the bank shall have to
Complied
submit a Board approved evaluation report to BB.
10 Prior Approval from Bangladesh Bank: Prior approval from Bangladesh Bank is mandatory
before appointing CEO as per section 15(4) & (5) of Bank Company Act 1991 (amended up
to 2013). For processing such approval, along with the proposal signed by the Chairman of
Complied
the BoD, the selected person's complete resume, offer letter (mentioning the direct & indirect
remuneration and facilities) and copy of Board's approval must be submitted to BB. The selected
person must also submit declarations as per Annexure A and Annexure B to BB.
11 Decision of Bangladesh Bank is final: The decision of BB for appointment of the CEO will be
treated as final and the CEO such appointed cannot be terminated, released or removed from Complied
his/her office without prior approval from BB.
B Responsibilities and Authorities of the CEO: The CEO of the bank, whatever name called,
shall discharge the responsibilities and exercise the authorities as follows:
a. In terms of the financial, business and administrative authorities vested upon him by the
BoD, the CEO shall discharge his own responsibilities. He shall remain accountable for
Complied
achievement of financial and other business targets by means of business plan, efficient
implementation thereof and prudent administrative and financial management.
b. The CEO shall ensure compliance of the Bank Company Act 1991 and other relevant laws
Complied
and regulations in discharging of routine functions of the bank.
c. The CEO shall include clearly any violation from Bank Company Act 1991 and/or other
relevant laws and regulations in the “Memo” presented to the meeting of the BoD or any Complied
other Committee (s) engaged by the BoD.
Sl.
No.
d. The CEO shall report to Bangladesh Bank of issues in violation of the Bank Company Act
Complied
1991 or of other laws/regulations.
e. The recruitment and promotion of all staffs of the bank except those in the two tiers below
him/her shall rest on the CEO. He/she shall act in such cases in accordance with the
Complied
approved service rules on the basis of the human resources policy and approved delegation
of employees as approved by the BoD.
f. The authority relating to transfer of and disciplinary measures against the staff, except those
at two tiers below the CEO, shall rest on him/her, which he/she shall apply in accordance
Complied
with the approved service rules. Besides, under the purview of the human resources policy
as approved by the BoD, he/she shall nominate officers for training etc.
3. Contractual appointment of Advisor and Consultant
Sl.
No.
A Rules and regulations for appointment of an Advisor No such Advisor in EBL
1 to 6 Experience and Suitability of Advisor, Responsibilities of the Advisor, Prior approval from
Bangladesh Bank before appointing an Advisor, Remuneration and other facilities of Advisor, N/A
Tenure of Advisor, Appointment of Ex-executive as Advisor.
B Rules and regulations for appointment of a Consultant No such Consultant in
EBL
1 to 6 Terms of reference of Consultant, Responsibilities of Consultant, Appointment of Consultant,
Tenure of Consultant, Remuneration/honorarium of Consultant, Appointment of Ex-executive N/A
as Consultant.
BSEC guidelines for Corporate Governance: Our Compliance Status
The Bangladesh Securities and Exchange Commission (BSEC) issued a Corporate Governance (CG) Guideline in 2012 which
is being followed by listed companies on ‘Comply’ basis. Status of compliance by EBL with the said CG guidelines issued by
BSEC through Notification no. SEC/CMRRCD/2006-158/134/Admin/44 dated 07 August 2012and BSEC Notification no. SEC/
CMRRCD/2006-158/147/Admin/48 dated 21 July 2013 is as follows:
(Report under Condition No. 7.00)
Compliance Status
(Put √ in the
Condition Remarks
Title appropriate column)
No. (if any)
Not
Complied
complied
1.0 Board of Directors
1.1 Board’s Size: No. of directors shall not be less than 5 (Five) and more than
√
20 (Twenty)
1.2 Independent Director
1.2 (i) Independent Director: At least 1/5th √
1.2 (ii) For the purpose of this clause “independent director” means a director:
1.2 (ii) a) Independent Directors do not hold any share or hold less than one percent
√
(1%) shares of total paid up capital.
1.2 (ii) b) Independent Directors are not connected with the company’s Sponsor or
√
Director or Shareholder who holds 1% or more shares.
1.2 (ii) c) Independent Directors do not have any other relationship, whether pecuniary
√
or otherwise, with the company or its Subsidiary/Associated Companies.
1.2 (ii) d) Independent Directors are not the Members, Directors or Officers of any
√
Stock Exchange.
1.2 (ii) e) Independent Directors are not the Shareholders, Directors or Officers of any
√
member of Stock Exchange or an Intermediary of the Capital Market.
1.2 (ii) f) Independent Directors are/were not the partners or executives in the Statutory
√
Audit Firm of the concerned company in preceding 3 (three) years.
Compliance Status
(Put √ in the
Condition Remarks
No. (if any)
Not
Complied
complied
1.2 (ii) g) They are not the Independent Directors in more than 3 (three) listed
√
companies.
1.2 (ii) h) They are not convicted by a Court of competent jurisdiction as a defaulter in
√
payment of any loan to a Bank or a Non-Bank Financial Institution (NBFI).
1.2 (ii) i) They have not been convicted for a criminal offence involving moral turpitude. √
1.2 (iii) The Independent Directors shall be appointed by the Board of Directors and Done in the
approved by the shareholders in the AGM. √ 24th AGM
of EBL.
1.2 (iv) The post of Independent Directors cannot remain vacant for more than 90
√
days.
1.2 (v) The Board shall lay down a Code of Conduct for all Board Members and
√
Annual Compliance of the Code to be recorded.
1.2 (vi) The tenure of office of an Independent Director shall be a term of 3 (three)
√
years which may be extended for 1 (one) term only.
1.3 Qualification of Independent Director
1.3 (i) Independent Director shall be knowledgeable individual with integrity. √
1.3 (ii) The Independent Director must have at least 12 (twelve) years of corporate
√
management/ professional experiences.
1.3 (iii) In special cases above qualification may be relaxed by the Commission
N/A
(BSEC).
1.4 Separate Chairman and CEO and their clearly defined roles and
√
responsibilities.
1.5 Directors Report to Shareholders
1.5 (i) Industry outlook and possible future developments in the industry. √
1.5 (ii) Segment-wise or product-wise performance. Please refer
√ to MD&A
Section
1.5 (iii) Risks and concerns. √
1.5 (iv) Discussion on cost of goods sold, gross profit margin and net profit margin Discussion
(being a banking company). on interest
income,
expense,
√
operating
and net
profit
provided.
1.5 (v) Discussion on continuity of any Extra-ordinary gain or loss. √
1.5 (vi) Basis for related party transaction- a statement of all related party transactions Please refer
should be disclosed in the annual report. √ to Annexure
C & C1.
1.5 (vii) Utilization of proceeds from public issues, right issues and/ or through any
√
others instruments.
1.5 (viii) An explanation if the financial results deteriorate after the company goes for
N/A
IPO, RPO, Rights Offer, Direct Listing etc.
1.5 (ix) If significant variance occurs between quarterly financial performance and Please refer
annual financial statements the management shall explain about the variance √ to Directors’
on their Annual Report. Report
1.5 (x) Remuneration to directors including independent directors. Please refer to
√
Note 36 of FS.
1.5 (xi) The financial statements prepared by the management of the issuer company
present fairly its state of affairs, the results of its operation, cash flows and √
changes in equity.
1.5 (xii) Proper books of account of the issuer company have been maintained. √
1.5 (xiii) Appropriate accounting policies have been consistently applied in preparation
of the financial statements and that the accounting estimates are based on √
reasonable and prudent judgment.
Compliance Status
(Put √ in the
Condition Remarks
No. (if any)
Not
Complied
complied
1.5 (xiv) International Accounting Standards (IAS)/Bangladesh Accounting Standards Departure
(BAS)/International Financial Reporting Standards (IFRS)/Bangladesh has been
Financial Reporting Standards (BFRS), as applicable in Bangladesh, have adequately
been followed in preparation of the financial statements and any departure √ explained in
there-from has been adequately disclosed. Note 2.1 to
the Financial
Statements.
1.5 (xv) The system of internal control is sound in design and has been effectively
√
implemented and monitored.
1.5 (xvi) There are no significant doubts upon the issuer company's ability to continue No doubts
as a going concern. If the issuer company is not considered to be a going upon EBL’s
concern, the fact along with reasons thereof should be disclosed. ability to
√
continue
as a going
concern.
1.5 (xvii) Significant deviations from the last year’s operating results of the issuer
√
company shall be highlighted and the reasons thereof should be explained.
1.5 (xviii) Key operating and financial data of at least preceding 5 (five) years shall be
√
summarized.
1.5 (xix) If the issuer company has not declared dividend (cash or stock) for the year,
N/A
the reasons thereof shall be given.
1.5 (xx) The number of Board meetings held during the year and attendance by each
√
director shall be disclosed.
1.5 (xxi) The pattern of shareholding shall be reported to disclose the aggregate number of shares (along with name wise
details where stated below) held by:
1.5 (xxi) a) Parent/Subsidiary/Associated Companies and other related parties (name
√
wise details);
1.5 (xxi) b) Directors, Chief Executive Officer, Company Secretary, Chief Financial Please refer
Officer, Head of Internal Audit and their spouses and minor children (name √ to Note 14.1
wise details); of the FS.
1.5 (xxi) c) Executives (top five salaried employees of the company other than stated in Please refer
1.5(xxi)b); √ to Note 14.1
of the FS.
1.5 (xxi) d) Shareholders holding ten percent (10%) or more voting interest in the Please refer
company (name wise details). NIL to Note 14.1
of the FS.
1.5 (xxii) In case of appointment/re-appointment of a Director the Company shall disclose the following information to
the Shareholders:
1.5 (xxii) a) A brief resume of the Director; √
1.5 (xxii) b) Nature of his/her expertise in specific functional areas. √
1.5 (xxii) c) Names of companies in which the person also holds the directorship and the Please refer
membership of committees of the board. √ to Annexure
C of the FS
2.0 Chief Financial Officer, Head of Internal Audit & Company Secretary
2.1 Appointment of CFO, Head of Internal Audit and Company Secretary and Head of
their clearly defined roles, responsibilities and duties. √ Finance in
place of CFO
2.2 Attendance of CFO and the Company Secretary at Board of Directors
√
meeting.
3 Audit Committee:
3 (i) Audit Committee shall be the sub-committee of the Board of Directors. √
3 (ii) The Audit Committee shall assist the Board of Directors in ensuring that Please refer
the financial statements reflect true and fair view of the state of affairs of the to the Report
√
Company and in ensuring a good monitoring system within the business. of the Audit
Committee.
Compliance Status
(Put √ in the
Condition Remarks
No. (if any)
Not
Complied
complied
3 (iii) The Audit Committee shall be responsible to the Board of Directors. The Please refer
duties of the Audit Committee shall be clearly set forth in writing. to the Report
√
of the Audit
Committee.
3.1 Constitution of the Audit Committee
3.1 (i) The Audit Committee shall be composed of at least 3 (three) members. √
3.1 (ii) Constitution of Audit Committee with Board Members including one
√
Independent Director.
3.1 (iii) All members of the Audit Committee should be “financially literate” and at
least 1 (one) member shall have accounting or related financial management √
experience.
3.1 (iv) Filling of Casual Vacancy in Committee. No such
√ instance as
yet
3.1 (v) The Company Secretary shall act as the secretary of the Committee. √
3.1 (vi) The quorum of the Audit Committee meeting shall not constitute without at
√
least 1 (one) independent director.
3.2 Chairman of the Audit Committee
3.2 (i) Chairman of the Audit Committee shall be an Independent Director. √
3.2 (ii) Chairman of the audit committee shall remain present in the Annual General
√
Meeting (AGM).
3.3 Role of Audit Committee
3.3 (i) Oversee the financial reporting process. √
3.3 (ii) Monitor choice of accounting policies and principles. √
3.3 (iii) Monitor Internal Control Risk management process. √
3.3 (iv) Oversee hiring and performance of external auditors. √
3.3 (v) Review along with the management, the annual financial statements before
√ Please refer
submission to the board for approval.
to the Report
3.3 (vi) Review along with the management, the quarterly and half yearly Financial
√ of the Audit
Statements before submission to the Board for approval.
Committee.
3.3 (vii) Review the adequacy of internal audit function. √
3.3 (viii) Review statement of significant related party transactions submitted by the
√
management.
3.3 (ix) Review Management Letters/ Letter of Internal Control weakness issued by
√
statutory auditors.
3.3 (x) When money is raised through Initial Public Offering (IPO)/ Repeat
Public Offering (RPO)/Rights Issue the company shall disclose to the Audit
Committee about the uses/ applications of funds by major category (capital N/A
expenditure, sales and marketing expenses, working capital, etc.), on a
quarterly basis, as a part of their quarterly declaration of financial results.
3.4. Reporting of the Audit Committee
3.4.1 Reporting to the Board of Directors
3.4.1 (i) The Audit Committee shall report on its activities to the Board of Directors. √
3.4.1 (ii) The Audit Committee shall immediately report to the Board of Directors on
the following findings, if any:
3.4.1 (ii) a) Report on conflicts of Interests. NIL
3.4.1 (ii) b) Suspected or presumed fraud or irregularity or material defect in the internal
NIL
control system;
3.4.1 (ii) c) Suspected infringement of laws, including securities related laws, rules and
NIL
regulations;
3.4.1 (ii) d) Any other matter which shall be disclosed to the Board of Directors
NIL
immediately.
3.4.2 Reporting of anything having material financial impact to the Commission. NIL
3.5 Reporting to the shareholders and general investors. NIL
Compliance Status
(Put √ in the
Condition Remarks
No. (if any)
Not
Complied
complied
4 External/Statutory Auditors: The issuer company should not engage its external/statutory auditors to perform the
following services of the company; namely:
4 (i) Appraisal or valuation services or fairness opinions. √
4 (ii) Financial information systems design and implementation. √
4 (iii) Book-keeping or other services related to the accounting records or financial
√
statements.
4 (iv) Broker-dealer services. √
4 (v) Actuarial services. √
4 (vi) Internal audit services. √
4 (vii) Any other service that the Audit Committee determines. √
4 (viii) No partner or employees of the external audit firms shall possess any share of
the company they audit at least during the tenure of their audit assignment √
of that Company.
4 (ix) Audit/certification services on compliance of corporate governance as
√
required under clause (i) of condition No. 7
5 Subsidiary Company
5 (i) Provisions relating to the composition of the Board of Directors of the
holding company shall be made applicable to the composition of the Board of √
Directors of the subsidiary company.
5 (ii) At least 1 (one) independent director on the Board of Directors of the holding
company shall be a director on the Board of Directors of the subsidiary √
company.
5 (iii) The minutes of the Board meeting of the subsidiary company shall be placed
√
for review in the following Board meeting of the holding company.
5 (iv) The Minutes of the respective Board meeting of the holding company shall
√
state that they have reviewed the affairs of the Subsidiary Company also.
5 (v) The Audit Committee of the holding company shall also review the financial
√
statements, in particular the investments made by the Subsidiary Company.
6 Duties of Chief Executive Officer (CEO) and Chief Financial Officer (CFO):
6 (i) They have reviewed financial Statements for the year and that to the best of Please
√
their knowledge and belief: refer to the
6 (i) a) These statements do not contain any materially untrue statement or omit any Statement
√
material fact or contain statements that might be misleading. on Integrity
6 (i) b) These statements together present a true and fair view of the company’s affairs of FS by
√
and are in compliance with existing accounting standards and applicable laws. MD & CEO
6 (ii) There are, to the best of knowledge and belief, no transactions entered into by and Head of
the company during the year which are fraudulent, illegal or violation of the √ Finance.
company’s code of conduct.
7 Reporting and Compliance of Corporate Governance:
7 (i) The company shall obtain a Certificate from a Professional Accountant/ Please
Secretary (CA/CMA/CS)regarding compliance of conditions of Corporate refer to the
√
Governance Guidelines of the Commission and shall send the same to the following
shareholders along with the Annual Report on a yearly basis. page.
7 (ii) The directors of the company shall state, in accordance with the Annexure
attached, in the directors' report whether the company has complied with √
these conditions.
Certificate on Compliance of Conditions of Corporate Governance Guidelines to the

Shareholders of Eastern Bank Limited
We have examined the compliance of condition of corporate governance guidelines of the Bangladesh Securities and
Exchange Commission (“BSEC”) by Eastern Bank Limited (the “Bank”) as stipulated in the BSEC notification no SEC/
CMRRCD/2006-158/134/Admin/44 dated 7thAugust 2012 and subsequent modification SEC/CMRRCD/2006-158/147/
Admin/48 dated 21 July as 2013 as at 31st December 2016.
The Bank’s Responsibilities

Those charged with governance and management of the Bank are responsible for complying with the conditions of corporate
governance guidelines as stated in the aforesaid notification and reporting of the status of compliance in the annual report.
Our Responsibilities
Our examination for the purpose of issuing this certification was limited to the checking of procedures and implementations
thereof, adopted by the Bank for ensuring the compliance of conditions of corporate governance and correct reporting of
compliance status on the attached statement on the basis of evidence gathered and representation received.
Conclusion
To the best of our information and according to the explanations given to us, we certify that the Bank has complied with the
conditions of corporate governance stipulated in the above mentioned BSEC notification and reported thereon.
Manzoor Alam, FCA

Senior Partner
ICAB Enrolment Number 132
For Hoda Vasi Chowdhury & Co
Dhaka, 04 April 2017

RISK MANAGEMENT
We seek to promote a strong risk culture throughout

our organization. Our aim is to identify and
evaluate the internal and external factors that
could affect our performance adversely. Our risk
and capital are managed by risk management
unit of the management under the supervision
of risk management committee of the board. Risk
management is like keeping everything safe under
the lock and key and supervising it from time to time.
RISK MANAGEMENT REPORT

Business & Economy in Brief: • Keeping momentum in implementing large infrastructure
• Bangladesh economy has achieved a sustained spell of projects,
growth over 6% per year since Fiscal Year 2007. • Making growth more inclusive and reducing poverty by
• Bangladesh achieves Ba3 (Moody’s) and BB- (Standard and creating jobs and supporting rural development,
Poor’s) with stable outlook for six consecutive years. Stable • Increasing transparency and accountability by addressing
real GDP growth and strong external balances have helped institutional and policy weaknesses, and
Bangladesh to achieve BB- rating with stable outlook from
• Reducing vulnerabilities to environmental degradation and
Fitch Ratings for the second time.
climate change,
• Certain mega projects are on: 35% work of Padma
• Maintaining stable capital market with investor’s confidence.
Bridge has been completed, commencement of work of
physical infrastructure of Rooppur Nuclear Power Plant, Risk Management
commencement of work of Metrorail project (MRT 6).
Effective risk management is fundamental to the success and
• Met Millennium Development Goal target and undertook
sustenance of the Bank. EBL has a strong, disciplined and
Sustainable Development Goal (SDG).
inclusive risk management culture where risk management is
• The gender gap has narrowed; poverty halved since 2000. a responsibility shared by all of the Bank’s employees. A key
• The country has made progress in providing access to health aspect of this culture is diversification across business lines,
and basic social services. products and industries.
• Higher public sector salaries offset a decline in remittances
in Bangladesh in FY2016.
Risk Management Framework
• Private sector credit growth rose to 16.5% from declining The primary goals of risk management are to ensure that
trend of previous years. the outcomes of risk-taking activities are consistent with
• Declining trend of interest rate prevailed in financial sector. the Bank’s strategies and risk appetite, and that there is an
appropriate balance between risk and reward in order to
• Stable exchange rate against US Dollar. maximize shareholders’ return. The Bank’s enterprise-wide risk
However, Country’s NPL hovered around 10% during the year management framework provides the foundation for achieving
before settling at 9.23% at year-end 2016 (8.79% at year-end these goals.
2015) riding mainly on restructure and write-off of classified
This framework is subject to constant evaluation to ensure that
loans.
it meets the challenges and requirements of the market in which
The major challenges facing Bangladesh now include: the Bank operates, including regulatory standards and industry
• Accelerating the annual rate of growth to 7% and above to best practices. The risk management programs of the Bank’s
move closer to upper middle-income status, subsidiaries conform in all material respects to the Bank’s risk
• Diversifying the economic base and creating new sources of management framework, although the actual execution of their
growth, programs may be different.
The Bank’s risk management framework is predicated on the provide independent oversight and objective challenge to the
three-lines-of-defense. In this model, functional Business Line first line of defense. Internal Audit Department (the third line)
of management (the first line) incurs and owns the risks, while provides assurance that control objectives are achieved by the
Risk Management and other control functions (the second line) first and second lines of defense.
The Bank’s risk management framework is applied on an enterprise-wide basis and consists of three key elements:
A. Risk Governance,
B. Risk Appetite, and
C. Risk Management Tools.
A. Risk Governance:
Risk Management Culture dedicated attention to these risks creates a focus on forward-
looking activities that keeps the Bank within its risk appetite on
Effective risk management requires a strong, robust, and
an on-going basis.
inclusive risk management culture. The business lines are
responsible for development and execution of business plans Core deliverables that the Bank must do on a daily basis are a
that are aligned with risk management framework and are key element of the Bank’s enterprise strategy, e.g.:
accountable for the risks they undertake. Understanding and 1. Maintain appropriate financial strength and liquidity.
managing these risks is a fundamental element of each business
• Diversity, quality and stability of earnings.
plan. Business lines work in partnership with Risk Management
and Control Functions to ensure that risks arising from their • Focus on core businesses, with disciplined and selective
business are thoroughly evaluated and appropriately addressed. strategic investments.
Risk education programs, and documented policies and • Maintain capital adequacy.
procedures are available to both the staffs in the business lines, 2. Measure, monitor and manage all aspects of the Bank’s risk
Risk Management and Control Functions. appetite and risk profile.
Decision making on risk issues is highly centralized. Head • Dedicated attention to credit, market, liquidity, and
of CRM under supervision of Chief Risk Officer (CRO) is operational risks.
responsible for review, approval and monitoring of transactions
and the related risk exposures. The flow of information and • Careful consideration of reputational, environmental,
transactions to CRM keeps senior management well informed and other risks.
of the risks the Bank faces, and ensures that transactions and • No tolerance for reputational risks that could affect our
risks are aligned with the Bank’s risk appetite. brand.
B. Risk Appetite 3. Meet the needs and expectations of our customers,

employees, shareholders and other key stakeholders.
Effective risk management requires clear articulation of the
Bank’s risk appetite and how the Bank’s risk profile will be 4. Ensure a deep, diverse and engaged pool of talented people.
managed in relation to that appetite. EBL started preparing 5. Operate in an efficient, secure and compliant manner.
its risk appetite statement from 2016 as per Bangladesh Bank’s
guideline.
C. Risk Management Tools
Effective risk management deploys tools that are guided by the
The Bank’s Risk Appetite Framework consists of a risk capacity,
Bank’s Risk Appetite Framework and integrated with the Bank’s
risk appetite statement and key risk appetite measures. Together,
strategies and business planning processes.
application of the risk appetite statement and monitoring of
the key risk appetite measures help to ensure the Bank stays
within appropriate risk boundaries. The Bank’s Credit Risk
Appetite further defines the Bank’s risk appetite with respect to
lending, counter-party credit risk, and other credit risks (such
as investments).
The Bank’s Risk Appetite Framework combines qualitative and

* Risk management tools are regularly reviewed and updated to
quantitative terms of reference to guide the Bank in determining
ensure consistency with risk-taking activities, and relevance to
the amount and types of risk it wishes to prudently undertake
the business and financial strategies of the Bank.
in pursuing the Bank’s strategic and financial objectives. Key
risk appetite measures provide clear idea of risk tolerance and Policies and Limits
risk limits, which are critical in implementing effective risk Policies
management. For major risks (credit, market, liquidity, and
operational), the key risk appetite measures are supported by Establish the governance and risk management culture over
management level limit structures and controls. Management’s the Bank’s risk-taking activities, and apply to specific types of
risk or to the activities that are used to measure and control for supporting the measurement of economic capital on an
risk exposure. They are based on recommendations from enterprise-wide basis. The risk sections explain the application
risk management, internal audit, business lines, and senior of these techniques.
executive management. Industry best practices and regulatory
requirements are also factored into the policies. Policies Risk measurement tools include the use of methods/models
are guided by the Bank’s risk appetite, and set the limits and and stress testing. The Bank uses models for a range of purposes
controls within which the Bank and its subsidiaries can operate. including estimating the value of transactions, measuring risk
exposures, determining credit risk ratings and parameters,
• Key risk policies are approved by the Board of Directors.
and calculating economic and regulatory capital. The use of
• Management level risk policies/instructions manuals quantitative risk methodologies and models is balanced by a
associated with processes such as Credit Instruction strong governance framework backed by sound judgment.
Manual and new products initiation are approved by senior
executive management and/or key risk committees. Regular Monitoring
Limits Ensures that business activities are within approved limits

or guidelines, and are aligned with the Bank’s strategies and
Control risk-taking activities within the tolerances established
risk appetite. Breaches, if any, of these limits or guidelines are
by the Board and senior executive management. Limits also
establish accountability for key tasks in the risk-taking process reported to senior management, risk committees, and/or the
and establish the level or conditions under which transactions Board depending on the limit or guideline.
may be approved or executed.
Risk Reports
Guidelines, Processes and Standards Aggregate measures of risk across products and businesses,
Guidelines and are used to ensure compliance with policies, limits, and
guidelines. They also provide a clear statement of the amounts,
Guidelines are the directives provided to implement policies types, and sensitivities of various risks in the Bank’s portfolios.
as set out above. Generally, they describe the facility types,
Senior management and the Board use this information to
aggregate facility exposures and conditions under which the
understand the Bank’s risk profile and the performance of the
Bank is prepared to do business. Guidelines ensure the Bank
has the appropriate knowledge of clients, products, and markets portfolios.
and that it fully understands the risks associated with the
business it underwrites. Guidelines may change from time to
Stress Testing
time, due to market or other circumstances. Risk taking outside The Bank’s stress testing programs draw upon the principles set
of guidelines usually requires approval of the Bank’s Managing out under guidelines issued by Bangladesh Bank.
Director & CEO.
Stress Testing Guidelines
Processes
Stress testing programs at enterprise level allow the Bank to
Processes are the activities associated with identifying,
estimate the potential impact on income, capital and liquidity of
evaluating, documenting, reporting and controlling risks.
significant changes in market conditions, credit environment,
Standards liquidity demands, or other risk factors. Enterprise-wide stress
Define the breadth and quality of information required to make testing is also integrated with both the strategic and financial
a decision, and the expectations in terms of quality of analysis planning processes, as well as crisis management planning. The
and presentation. Processes and standards are developed development, approval and on-going review of the Bank’s stress
on an enterprise-wide basis, and documented in a series of testing programs are subject to Bangladesh Bank’s updated
policies, manuals and handbooks under the purview of Risk guidelines and instructions. Stress testing report is prepared
Management Division. Key processes cover the review and on quarterly basis and presented to the Risk Management
approval of new products, model validation and stress testing. Committee of the Board.
Measurement, Monitoring and Reporting Risk Mitigation Methodologies
Risk Management Division (in coordination with different Principal Risk Types
risk centric departments) is responsible for developing and
maintaining an appropriate suite of risk management tools The principal risk types, their governing documentation, and
to support the operations of the various business lines, and their applicability to risk appetite are outlined in the table below.
Risk type Governing Documentation Application to Risk Appetite Quantitative limits/Tolerances
Credit Risk Credit Risk Policy Exposure to a single customer or group of related parties.
Credit Risk Appetite Country risk (exposure limits to control transfer/cross-border and
Collective Allowance Policy for sovereign default risks); and
Performing Loans
Industry concentrations (exposure and risk adjusted concentration
limits).
Market Risk Market and Structural Risk Quantitative limits/tolerances, such as various VaR limits, stress
Management Policy test results, equity and debt investment exposures, and structural
interest rate and foreign exchange exposures.
Liquidity and Liquidity Risk and Collateral Quantitative limits/tolerances, such as:
Funding Risk Management policy Appropriate hold levels of unencumbered high quality liquid
assets that can be readily sold or pledged;Limits to control the
maximum net cash outflow over specified short-term horizon; and
Diversification of funding by source, type of depositor, instrument,
term and geographic market.
Other Risks Operational Risk Management Systematic identification, measurement, mitigation and monitoring
Operational Risk Policy and Framework of operational risk, regardless of whether the risk is internal to the
Bank or outsourced to a third party;
Internal Control Policy
Minimization of residual operational risk; and
Fiduciary Risk Management Policy
Expressed quantitatively by an aggregate loss limit.
Model Risk Management Policy
New Products and Services
Risk Management Policy
Information Technology Risk
Management Policy
Outsourcing & Other Arrangements
Reputational Risk Reputational Risk Policy Low tolerance for reputational, legal, or taxation risk arising in
Guidelines for Business Conduct business activities, initiatives, products, services, transactions or
processes, or from a lack of suitability of products for clients.
Compliance Policy
Environmental Environmental Policy Consistency with the Equator Principles by requiring provisioning
Risk of project financing only to those projects whose borrowers
can demonstrate their ability and willingness to comply with
comprehensive processes aimed at ensuring that projects are
developed in a socially responsible manner and according to sound
environmental management practices.
Strategic Risk Annual Strategy Report to the Strategy report considers linkages among the Bank’s Risk Appetite
Board of Directors Framework with the enterprise strategy, business line strategies
and corporate function strategies; also incorporates linkages to
measuring progress against strategic priorities and implementation.
Insurance Risk Insurance Risk Policy and Maintain minimal exposure to insurance risk; where insurance
Framework risks are taken, it is on a selective basis to achieve stable and
sustainable earnings, the risk assumed is diversified geographically
and by product, and the majority is short-term.
Credit Risk
Credit risk is the risk of loss resulting from the failure of a borrower or counter-party to honor its financial or contractual obligations
to the Bank. Credit risk arises in the Bank’s direct lending operations, and in its funding, investment and trading activities where
counter-parties have repayment or other obligations to the Bank. Credit risk includes settlement risk, suitability risk and wrong
way risk.
Credit Management Process
Credit Risk Summary – single name/aggregation exposures, beyond which a

summary of exposures must be reported to the Board.
The Bank’s overall loan book as of December 31, 2016 increased
to BDT 152.08 billion versus BDT 130.23 billion as of December Risk Management Division develops the credit risk management
31, 2015; growth mainly driven by Corporate Business. framework and policies that detail, among other things, the
Consumer Business and SME. The corporate loan book, which credit risk rating systems and associated parameter estimates;
accounts for 71.41% of the total loan while SME and Consumer the delegation of authority for granting credit; the calculation
exposures were BDT 43.48 billion as at December 31, 2016. of the allowance for credit losses; and the authorization of
write-offs.
The Board of Directors, either directly or through the Risk
Committee (of the Board), reviews and approves the Bank’s Corporate credit exposures are segmented by major industry
Credit Risk Appetite annually and Credit Policy Manual group. Aggregate credit risk limits for each of these segments
triennially. are also reviewed and approved annually by the Board. Portfolio
management objectives and risk diversification are key factors
The objectives of the Credit Risk Appetite are to ensure that: in setting these limits.
– target markets and product offerings are well defined at Consistent with the Board-approved limits, borrower limits
both the enterprise-wide and business line levels; are set within the context of established lending criteria and
– the risk parameters for new under writings and for the guidelines for individual borrowers, particular industries,
portfolios as a whole are clearly specified; countries and certain types of lending, to ensure the Bank
does not have excessive concentration in any single borrower,
The Credit Risk Policy articulates the credit risk management or related group of borrowers, particular industry sector or
framework, including: geographic region. Through the portfolio management process,
– key credit risk management principles; loans may be syndicated to reduce overall exposure to a single
name. Risk is also mitigated through the selective sale of loans.
– delegation of authority;
Banking business units and Risk Management Division
– the credit risk management program; regularly review various segments of the credit portfolio on
an enterprise-wide basis to assess the impact of economic
– counter-party credit risk management for trading and
trends or specific events on the performance of the portfolio,
investment activities;
and to determine whether corrective action is required.
– aggregate limits, beyond which credit applications must be These reviews include the examination of the risk factors for
escalated to the Board for approval; and particular products, industries and countries. The results of
these reviews are reported to the Risk Policy Committee and, of deterioration. In addition, a review and risk analysis of
when significant, to the Board. each borrower is conducted annually, or more frequently for
higher-risk borrowers. If, in the judgment of management, an
Risk Measures
account requires the expertise of specialists in workouts and
The credit risk rating systems support the determination of restructurings, it will be transferred to a special accounts group
key credit risk parameter estimates which measure credit and for monitoring and resolution.
transaction risk. These risk parameters – probability of default,
loss given default and exposure at default are transparent and Credit Risk Mitigation – Collateral/Security
may be replicated in order to provide consistency of credit Traditional Non-Retail Products (e.g. working capital lines of
adjudication, as well as minimum lending standards for each Credit, Term Loans)
of the risk rating categories. The parameters are an integral
part of enterprise-wide policies and procedures encompassing Collateral values are accurately identified at the outset and
governance, risk management, and control structure, and are throughout the tenure of a transaction by using standard
used in various internal and regulatory credit risk quantification evaluation methodologies. Collateral valuation estimates are
calculations. conducted at a triennial frequency by which the market value
fluctuates, using the collateral type and the Borrower risk
The Bank’s credit risk rating system is subject to a rigorous profile.
validation, governance and oversight framework. The objectives
of this framework are to ensure that: In addition, when it is not cost effective to monitor highly
volatile collateral (e.g. accounts receivable, inventory),
- Credit risk rating methodologies and parameters are
appropriate lending margins are applied to compensate (e.g.
appropriately designed and developed, independently
accounts receivable are capped at 80% of value, inventory at
validated, and regularly reviewed; and
50%). The frequency of collateral valuations is also increased
- The review and validation processes represent an effective when early warning signals of a Borrower’s deteriorating
challenge to the design and development process. financial conditions are identified.
Internal credit risk ratings and associated risk parameters affect Borrowers are required to confirm adherence to covenants
loan pricing, computation of the collective allowance for credit including confirmation of collateral values on a periodic basis,
losses, and return on economic capital. which are used by the Bank to provide early warning signals
Risk Ratings of collateral value deterioration. Periodic inspections of
physical collateral are performed where appropriate and where
The Bank’s risk rating system utilizes internal Credit Risk reasonable means of doing so are available.
grading (CRG) codes – an 11 point scale used to differentiate
the risk of default of borrowers, and the risk of loss on facilities. Bank procedures require verification including certification by
Bank officials during initial, annual, and periodic reviews that
A separate risk class is also assigned at the facility level, taking collateral values/margins etc. have been assessed and, where
into consideration additional factors, such as security, seniority necessary, steps have been taken to mitigate any decreased
of claim, structure, term and any other forms of credit risk collateral values.
mitigation that affect the amount of potential loss in the event
of a default of the facility. Security typically takes the form of Retail Credit
charges over inventory, receivables, real estate, and operating Retail credit exposures arise in the country’s banking business
assets when lending to corporate and commercial borrowers; lines. The decision making process for retail loans ensures
and cash or treasuries for trading lines such as securities
that credit risks are adequately assessed, properly approved,
lending, repurchase transactions, and derivatives. The types
continually monitored and actively managed. For retail loans
of acceptable collateral, and related valuation processes are
Bangladesh Bank’s PPG guidelines work as a governing manual.
documented in risk management policies and manuals.
Other forms of credit risk mitigation include third party Market Risk
guarantees. Market risk is the risk of loss from changes in market prices
Internal borrower and facility risk ratings are assigned when a and rates (including interest rates, credit spreads, equity prices,
facility is first authorized, and are promptly re-evaluated and foreign exchange rates and commodity prices), the correlations
adjusted, if necessary, as a result of changes to the customer’s between them, and their levels of volatility.
financial condition or business prospects. Re-evaluation is
an ongoing process, and is done in the context of general
Market Risk Factors
economic changes, specific industry prospects, and event risks, Interest Rate Risk
such as revised financial projections, interim financial results
The risk of loss due to changes in the level and/or the volatility
and extraordinary announcements.
of interest rates. This risk affects instruments such as, but not
Individual credit exposures are regularly monitored by both limited to, debt securities, loans, mortgages and deposits.
the business units and Credit Risk Management for any signs
Interest rate risks are managed through sensitivity, gap, stress factors as well as historical and theoretical multi risk market
testing, annual income and VaR limits and mitigated through events. Historical scenarios capture severe movements over
portfolio diversification. periods that are significantly longer than the one-day holding
period captured in VaR.
Credit Spread Risk
The risk of loss due to changes in the market price and volatility Sensitivity Analysis
of credit, or the creditworthiness of issuers. This risk is mainly In trading portfolios, sensitivity analysis is used to measure the
concentrated in loan and debt securities portfolios. Risk is effect of changes in risk factors, including prices and volatility,
managed through sensitivity, stress testing and VaR limits. on financial products and portfolios. These measures apply
Foreign Currency Risk across product types and geographies and are used for limit
monitoring and management reporting.
The risk of loss resulting from exchange rate volatility. Foreign
currency denominated debt and other securities as well as In non-trading portfolios, sensitivity analysis assesses the effect
future cash flows in foreign currencies are exposed to this of changes in interest rates on current earnings and on the
type of risk. Risk is managed through maximum net trading economic value of shareholders’ equity. It is applied globally
position, sensitivity, stress testing and VaR limits and mitigated to each of the major currencies within the Bank’s operations.
through hedges using foreign exchange positions. The Bank’s sensitivity analysis for limit and disclosure purposes
is measured through positive and negative parallel shifts in
Equity Risk the underlying interest rate curves. The Bank also performs
The risk of loss arises due to changes in market prices, volatility sensitivity analysis using various non-parallel interest rate
or any other equity related risk factor of investment portfolio. curve shifts. The Board reviews sensitivity results quarterly.
This risk affects instruments such as, but not limited to,
Gap Analysis
equities, mutual funds and other equity linked products. Risk
is managed through sensitivity, stress testing and VaR limits. Gap analysis is used to assess the interest rate sensitivity of
re-pricing mismatches in the Bank’s non-trading operations.
Market Risk Governance
Under gap analysis, interest rate sensitive assets, liabilities and
The Board of Directors reviews and approves market risk off-balance sheet instruments are assigned to defined time
policies and limits annually. The Bank’s Asset-Liability periods based on expected re-pricing dates. Products with
Committee (ALCO) and Bank Risk Management Committee a contractual maturity are assigned an interest rate gap term
(BRMC) oversee the application of the framework set by the based on the shorter of the contractual maturity date and the
Board, and monitor the Bank’s market risk exposures and the next re-pricing date. Products with no contractual maturity
activities that give rise to these exposures. are assigned an interest rate gap based on observed historical
The Bank uses a variety of metrics and models to measure and consumer behavior. The Board reviews gap results quarterly.
control market risk exposures. These measurements are selected Duration Analysis
based on an assessment of the nature of risks in a particular
activity. The principal measurement techniques are Value Duration is the time‐weighted average maturity of the present
at Risk (VaR), NOP, NII, Stress testing, Sensitivity analysis, value of the cash flows from assets, liabilities and off‐balance
Duration analysis and Gap analysis. The use and attributes of sheet items. It measures the relative sensitivity of the value of
each of these techniques are noted in the Risk Measurement these instruments to changing interest rates (the average term
Summary. to re‐pricing), and therefore reflect show changes in interest
rates will affect the bank’s economic value, that is, the present
Risk Measurement Summary value of equity. Generally, the longer the term to maturity (next
Value at Risk (VaR) re‐pricing date) of an investment and the smaller the payments
VaR is a statistical method of measuring potential loss due to that occur before maturity (e.g. coupon payments), the higher
market risk based on a common confidence interval and time the duration (in absolute value) and vice versa. Higher duration
horizon. The Bank calculates VaR daily using a 99% confidence implies that a given change in the level of interest rates will have
level, and a one-day holding period for its trading portfolios. a large impact on economic value.
This means that once in every 100 days, the trading positions
Validation of Market Risk Models
are expected to lose more than the VaR estimate. The Bank
calculates general market risk VaR using historical simulation Prior to the implementation of new market risk models,
based on 6 months market data. rigorous validation and testing is conducted. Validation is
conducted when the model is initially developed and when
Stress Testing
any significant changes are made to the model. The models are
A limitation of VaR is that they only reflect the recent history also subject to ongoing validation, the frequency of which is
of market volatility and a specific 6 months period. To determined by model risk ratings. Models may also be triggered
complement these measures, stress testing examines the impact for earlier revalidation when there have been significant
that abnormally large changes in market factors and periods of structural changes in the market or changes to the composition
prolonged inactivity might have on trading portfolios. Stress of the portfolio. Model validation includes back testing, and
testing scenarios are designed to include large shifts in risk additional analysis such as:
• Theoretical review or tests to demonstrate whether investment products are also incorporated into the exposure
assumptions made within the internal model are calculations.
appropriate;
Exchange Rate Risk:
• Impact tests including stress testing that would occur under
Exchange Rate Risk is the current or prospective risk to
historical and hypothetical market conditions;
earnings and capital arising from adverse movements in
• The use of hypothetical portfolios to ensure that the model currency exchange rates. Banks foreign exchange risk may arise
is able to capture concentration risk that may arise in an from following activities:
undiversified portfolio. The validation process is governed
Trading in foreign currencies as a market maker or position
by the Bank’s Model Risk Management Policy.
taker including the unhedged positions arising from customer
Non-trading market risk driven foreign exchange transactions;
Funding and investment activities i. Holding foreign currency position in the banking book in
the form of loans in foreign currency.
Market risk arising from the Bank’s funding and investment
activities is identified, managed and controlled through the ii. Engaging in derivative transactions that are denominated in
Bank’s asset-liability management processes. The Asset-Liability foreign currency for trading or hedging.
Committee meets biweekly to review risks and opportunities, iii. Settlement risk due to default of counter parties.
and evaluate performance including the effectiveness of
different strategies. iv. Time-zone risk, which arises out of time lags in settlement
of one currency in one center and settlement of another
Interest rate risk
currency in another center located at a different time zone.
Interest rate risks in the non-trading portfolios are
Bank’s foreign exchange risk management policies and
predominantly driven by the interest rate mismatch (i.e. re-
procedure include:
pricing frequency) in the asset and liability exposures.
i. accounting and management information systems to
Interest rate risk arising from the Bank’s lending, funding and
measure and monitor foreign exchange positions, foreign
investment activities is managed in accordance with Board-
exchange risk and foreign exchange gains or losses;
approved policies and limits, which are designed to control the
risk to net interest income and economic value of shareholders’ ii. governing the management of foreign currency activities;
equity. The annual income limit measures the effect of a specified and
change in interest rates on the Bank’s annual net interest income
iii. independent inspections or audits.
over the next twelve months, while the economic value limit
measures the impact of a specified change in interest rates on Measurement of foreign exchange risk:
the present value of the Bank’s net assets. These limits are set Bank ensures that all the people dealing with foreign exchange
according to the documented risk appetite of the Bank.
transactions have clear understanding of the amount at risk
Net interest income and the economic value of equity result from and the impact of changes in exchange rates on this foreign
the differences between yields earned on the Bank’s non-trading currency exposure. The Bank has an effective accounting and
assets and interest rate paid on its liabilities. The difference management information system in place that accurately and
in yields partly reflects mismatch between the maturity and frequently records and measures its foreign exchange exposure
re-pricing characteristics of the assets and liabilities. This and the impact of potential exchange rate changes on the bank.
mismatch is inherent in the non-trading operations of the Bank At a minimum, the bank monitors and reports:
and exposes it to adverse changes in the level of interest rates.
• the net spot and forward positions in each currency or
The Asset-Liability Committee provides strategic direction for
pairings of currencies in which the bank is authorized to
the management of structural interest rate risk within the risk
have exposure;
appetite framework authorized by the Board of Directors. The
asset/liability management strategy is executed by ALM desk • the aggregate net spot and forward positions in all
with the objective of enhancing net interest income within currencies; and
established risk tolerances.
• transactional and translational gains and losses relating
Gap analysis, simulation modeling, sensitivity analysis and to trading and structural foreign exchange activities and
VaR are used to assess exposures and for limit monitoring exposures.
and planning purposes. The Bank’s interest rate risk exposure
Investment portfolio risks
calculations are generally based on the earlier of contractual
re-pricing or maturity of on-balance sheet and off-balance The Bank holds investment portfolios to meet liquidity and
sheet assets and liabilities, although certain assets and liabilities statutory reserve requirements and for investment purposes.
such as credit cards and deposits without a fixed maturity These portfolios expose the Bank to interest rate, foreign
are assigned a maturity profile based on the longevity of the currency, credit spread and equity risks. Debt investments
exposure. Expected prepayments from loans and cashable primarily consist of government, agency, and corporate bonds.
Equity investments include common and preferred shares, as • Helping the Bank to understand the potential behavior of
well as a diversified portfolio of third-party managed funds. various on-balance sheet and off-balance sheet positions in
The majority of these securities are valued using prices obtained circumstances of stress; and
from external sources. These portfolios are controlled by a
• Based on this knowledge, facilitating the development of
Board-approved policy and limits.
risk mitigation and contingency plans.
Trading market risk
The Bank’s liquidity stress tests consider the effect of changes
The Bank’s policies, processes and controls for trading activities in funding assumptions, depositor behavior and the market
are designed to achieve a balance between pursuing profitable value of liquid assets. The Bank performs industry standard
trading opportunities and managing earnings volatility within stress tests, the results of which are reviewed at senior levels
a framework of sound and prudent practices. Trading activities of the organization and are considered in making liquidity
are primarily customer focused. management decisions.
Market risk arising from the Bank’s trading activities is managed • Contingency planning – the Bank maintains a liquidity
in accordance with Board-approved policies, and aggregate contingency plan that specifies an approach for analyzing
VaR and stress testing limits. The quality of the Bank’s VaR is and responding to actual and potential liquidity events.
validated by regular back testing analysis, in which the VaR is
The plan outlines an appropriate governance structure for
compared to both theoretical profit and loss results based on
management and monitoring of liquidity events, processes
fixed end of day positions and actual reported profit and loss.
for effective internal and external communication, and
A VaR at the 99% confidence interval is an indication of a 1%
identifies potential counter measures to be considered at
probability that losses will exceed the VaR if positions remain
various stages of an event. A contingency plan is maintained
unchanged during the next business day. Trading positions are
both at the parent-level as well as for major subsidiaries.
however managed dynamically and, as a result, actual profit/
loss back testing exceptions is uncommon. • Funding diversification – the Bank actively manages the
diversification of its deposit liabilities by source, type of
Liquidity Risk depositor, instrument, term and geography.
Liquidity risk is the risk that the Bank is unable to meet its
• Core liquidity – the Bank maintains a pool of highly liquid,
financial obligations in a timely manner at reasonable prices.
unencumbered assets that can be readily sold or pledged
Financial obligations include liabilities to depositors, payments
to secure borrowings under stressed market conditions or
due under derivative contracts, settlement of securities
due to Bank-specific events. The Bank also maintains liquid
borrowing and repurchase transactions, and lending and
investment commitments. assets to support its intra-day settlement obligations in
payment, depository and clearing systems.
Effective liquidity risk management is essential to maintain
the confidence of depositors and counter parties, manage the We have identified several key liquidity risk indicators, which
Bank’s cost of funds and to support core business activities, are monitored on a regular basis to ensure healthy liquidity
even under adverse circumstances. position. These ratios are:
i. Statutory Liquidity Requirement (SLR)
Liquidity risk is managed within the framework of policies and
limits that are approved by the Board of Directors. The Board ii. Liquidity Coverage Ratio (LCR)
receives reports on risk exposures and performance against iii. Net Stable Funding Ratio (NSFR)
approved limits. The Asset-Liability Committee (ALCO)
iv. Asset to Deposit Ratio
provides senior management oversight of liquidity risk.
v. Maximum Cumulative Outflow (MCO)
The key elements of the liquidity risk framework are:
vi. Volatile Liability Dependency Ratio
• Measurement and modeling – the Bank’s liquidity model
measures and forecasts cash inflows and outflows, including vii. Liquid Asset to Total Deposit Ratio
off-balance sheet cash flows on a daily basis. Risk is managed viii. Liquid Asset to Short Term Liabilities
by a set of key limits over the maximum net cash outflow by
The second and third ratios mentioned above have been
currency over specified short-term horizons (cash gaps), a
introduced by Bangladesh Bank under Basel III guidelines in
minimum level of core liquidity, and liquidity stress tests.
order to achieve two separate but complimentary objectives.
• Reporting – Global Risk Management provides independent The first objective (of LCR) is to promote short-term resilience
oversight of all significant liquidity risks, supporting the of a bank’s liquidity risk profile by ensuring that it has sufficient
ALCO with analysis, risk measurement, stress testing, high quality liquid resources to survive an acute stress scenario
monitoring and reporting. lasting for one month. The second objective (of NSFR) is
• Stress testing – the Bank performs liquidity stress testing to promote resilience over a longer time horizon by creating
on a regular basis, to evaluate the effect of both industry- additional incentives for a bank to fund its activities with more
wide and Bank-specific disruptions on the Bank’s liquidity stable sources of funding on an ongoing structural basis.
position. Liquidity stress testing has many purposes
including:
Liquid assets Money Laundering & Terrorist Financing Risk
Liquid assets are a key component of liquidity management Management:
and the Bank holds these types of assets in sufficient quantity to Money Laundering is not an isolated issue in our country;
meet potential needs for liquidity management. rather it has become global and affects almost all countries. In
Liquid assets can be used to generate cash either through sale, the last decade, financial crime has become more organized,
repurchase transactions or other transactions where these assets more sophisticated and has spread out internationally. It is
can be used as collateral to generate cash, or by allowing the therefore important that the management of banks and other
asset to mature. Liquid assets include deposits at central banks, financial institutions view Money Laundering and Terrorist
deposits with financial institutions, call and other short-term Financing Prevention as a part of their risk management
loans, marketable securities, precious metals and securities strategy. Eastern Bank always predicts, measures and assesses
received as collateral from securities financing and derivative the probability of the occurrence of money laundering and
transactions. Liquid assets do not include borrowing capacity terrorist financing risks to ensure early prevention. A separate
from central bank facilities. Central Compliance Unit (CCU) has been formed to combat
against these odds.
Marketable securities are securities traded in active markets,
which can be converted to cash within a time frame that is in Functionalities of Central Compliance Unit (CCU)
accordance with the Bank’s liquidity management framework. • The Bank has a separate Central Compliance Unit (CCU)
Assets are assessed considering a number of factors, including in place and a senior official has been designated as Head
the expected time it would take to convert them to cash. of CCU to ensure compliance with Money Laundering
Prevention Act and Anti-Terrorism Act.
Other Risks
• AML Risk Management and Assessment Guideline has
Operational risk
been prepared and approved by the Board of Directors.
Operational risk is the risk of loss, whether direct or indirect,
• The CCU nominates Branch Anti-Money Laundering
to which the Bank is exposed due to inadequate or failed
Compliance Officer (BAMLCO) for Branches and
internal processes or systems, human error, or external events.
Department Anti-Money Laundering Compliance Officer
Operational risk includes legal and regulatory risk, business
(DAMLCO) for departments/divisions and sets their
process and change risk, fiduciary or disclosure breaches,
respective duties /responsibilities to ensure safety and
technology failure, financial crime and environmental risk.
compliance of AML/CFT Risk.
It exists in some form in every Bank business and function.
Operational risk can not only result in financial loss, but also • The CCU arranges training for all bank employees through
regulatory sanctions and damage to the Bank’s reputation. The in-house experts and hired experts from Bangladesh Bank.
Bank is very successful at managing operational risk with a view In line with that, CCU arranged training for approx. 1,100
to safeguarding client assets and preserving shareholder value. employees to raise awareness on these in 2016.
Reputational risk
Reputational risk is the risk that negative publicity regarding
Eastern Bank’s conduct, business practices or associations,
whether true or not, will adversely affect its revenues, operations
or customer base, or require costly litigation or other defensive
measures.
Environmental risk
Environmental risk refers to the possibility that environmental
concerns involving Eastern Bank or its customers could affect
the Bank’s financial performance.
Insurance risk
The Bank is both a distributor of third party insurance products
and underwriter of insurance risk.
Insurance risk is the risk of potential financial loss due to actual
experience being different from that assumed in the pricing
process of the insurance products. Functions of Central Compliance Unit
Strategic risk
The core duties and responsibilities of CCU are as follows:
Strategic risk is the risk that the Bank’s business strategies are
ineffective, being poorly executed, or insufficiently resilient to • CCU oversees the full compliance of Bank’s Anti-Money
changes in the business environment. Laundering (AML) & Countering Financing of Terrorism
(CFT) Policy and reviews and updates the policy as and • Install, modify, enhance and maintain data system security
when required. software.
• It establishes strategies and designs programs to combat • Work on determining acceptable risk levels for the Bank
against Money Laundering and Terrorist Financing. and ensuring IT environments are adequately protected
from potential risks and threats.
• It assures the implementation of anti-money laundering
and countering terrorist financing programs and policies to • Participate in development and implementation of the
mitigate such financial frauds and risks. appropriate and effective controls to mitigate identified
threats and risks.
• CCU arranges appropriate training for the employees
on AML issues so that employees are fully aware of the • IT division manages all changes as per approved policy and
regulatory issues to discharge their responsibilities with process and also maintains all logs/forms.
competence and ethics.
• Continue to enhance the Information/Cyber security
• It examines and analyzes the STR report received from awareness programs for employees and customers.
various branches and reports them to BFIU, Bangladesh
• Review system logs for the Bank’s infrastructure to identify
Bank if needed.
trends. Investigate abnormalities and exceptions to the
• CCU addresses and satisfies any query from Bangladesh Bank’s Information Security Program.
Financial Intelligence Unit (BFIU) for any account of a
customer. • Review system vulnerability and penetration testing and IT
audits to ensure findings are sufficiently addressed.
• It also performs various safety and regulatory functions as
per the instructions of BFIU; for example, freeze/mark “no • Protection of Sensitive Area/Information Store & Processing
debit” or withdrawal option for suspicious transactions or Zone (ISPZ):
criminal accounts. • EBL IT has established standard physical and environmental
security measures (e.g. Locked Door, Locked rack, CCTV,
Information Communication and Technology AC, Fire Extinguisher, etc.) to all sensitive areas (e.g. Data
Risk Management: Centre, Disaster Recovery Site, Power Rooms, Server
The purpose of managing ICT risk is to provide continuous Rooms, etc.).
assurance on EBL’s information system security specifically • IT has standard Logical Security Measures (e.g. Access card,
on integrity, confidentiality and availability of information by Password Protected Server, Access Log, Measuring Device
ensuring appropriate security controls. Logs, Periodic Testing Results, etc.) to all core device (server,
For many organizations ICT risk management is rapidly PC, etc.), connecting device (switch, router, etc.), security
developing into a more forward looking, enterprise-wide device (firewall, IDS, etc.), all applications (core banking
approach. To ensure effective ICT risk management, EBL system, antivirus, firewall, VPN, utilities, etc.), databases,
focuses on being proactive, rather than reactive, and use risk networks and others.
management to both drive competitive advantage and sustain • EBL IT has prescribed access request and revocation form
profitability and growth. The main objective of a proactive for security zone.
approach is to limit the damage that can be done by the intruder
and make sure that the system remains secure and operational. • IT has authorized and updated access list for security zones.
Treating information security as a process not product, EBL • IT maintains and reviews visitor book for accessing security
takes adequate information security initiatives to ensure the zone.
security of its processed information. The Bank is committed • IT performs testing of measurement and control devices/
to protect customer information and assets from any type of systems (e.g. smoke, fire, water detector).
unauthorized use and/or fraud. Following tasks are carried out
to manage ICT risk of the Bank: • Design, plan/schedule and coordinate IT Disaster Recovery
Plan (DRP) tests (primarily focused on testing correct
• Monitor access to all systems and maintains access operation of the DR technologies) and exercises (primarily
control profiles on computer network and systems. Track focused on training people in IT DR-related procedures
documentation of access authorizations to all resources. and activities), evaluating their effectiveness and promoting
• IT Assets inventory is adequately maintained and reviewed any improvement activities that are considered necessary to
periodically. meet the business objectives.
• Develop and/or maintain appropriate segregation of duties • IT has Business Continuity Management (BCM) to support
within and across applications. and handle any human made or natural incident/disaster.
Moreover, regular backup schedule and retention avoids the
• Research and investigate measures that address data security
risk of data loss based on the criticality of the system. All
risks and potential losses for reporting purposes.
incidents and failure logs are investigated and brought to
resolution.
Risk Reporting:
Self -assessed
Risk Category Risk Analysis and Management Actions
risk rating 2016
Credit policy manual is reviewed and effectiveness of credit policies
is assessed regularly based on feedback from related departments.
Amendments made to credit policies are approved by the Board
Risk due to in effective credit policy arises
of Directors; and procedures by the Managing Director & CEO.
when credit policy and any amendments
Low Performance against internally defined risk appetite and regulatory
thereto cannot keep pace with changes in
requirement is reviewed periodically. Potential risk exposures
the local and global environment.
arising from changes in local and global economic environment
are monitored. Reports are circulated to relevant Business Units,
Bank Risk Management Committees and Board Risk Committee.
The credit quality of the corporate banking portfolio has displayed
a gradual improvement in 2015. Corporate loan portfolio
represents 74% of bank’s total loans and advances. Corporate
portfolio distribution in terms of internal rating in the year 2015
& 2016 is presented below.
Adequacy of Portfolio monitoring Risk

arises where systems and controls are not
Low
in place to regularly assess the health of
the credit portfolio.
Sectoral Exposure: Concentration risk is measured by Harfindahl-

Hirschman Index (HHI). As on 31 December 2016 index indicates
moderate concentration.
Credit Concentration Risk (Risk arises

when Credit Portfolio is not sufficiently Moderate
diversified)
Self -assessed
risk rating 2016
Top 20 customer exposure:
Fund based exposure to top 20 customers are measured as
percentage of total loans and advances as mention in the balance
sheet. Some consideration to top 20 customers exists since the
EBL has about 74% exposure in corporate banking. The bank
pursuing its business in SME sector since last seven years to reduce
concentration on large borrower and SME portfolio now consists
about 15 percent of total portfolio. Bank shall continue its priority
in SME sector to reduce concentration risk on large borrowers.
Moderate
Gross NPL and Net NPL (Gross NPL less specific provision and
interest suspense) as percentage of Loans and Advances for last
five years are shown below:
Adequacy of Recovery Process (Risk

arises when systems and controls are
Moderate
not in place to monitor recoveries and
maintain adequate bad debt provisioning)
The Bank got benefit of reduced NPA during the year from its
different strategies along with all-out efforts for recovery of NPA
at the same time arresting sliding of performing loan to NPA.
Furthermore, the recovery processes were strengthened and
minimum regulatory loan loss provision has been provided.
We continuously review liquidity policy and contingency funding
Risk arising from inability to raise capital plan to address funding methods in an emergency situation. A
Low
in a liquidity crisis. 7-year non-convertible sub debt of BDT 2,500 million has been
raised in 2015 to enhance the capital base.
Self -assessed
risk rating 2016
Asset Deposit (AD) ratio was around 80% at the end of the year.
Risk arising from inability to meet
Adherence to the statutory liquid asset ratio (SLR) monitored. The
maturing deposit liabilities as they fall Low
SLR mandates that 19.5% of all liabilities excluding shareholder
due.
funds should be held in defined liquid assets.
Bank has implemented stress tests to measure the resilience of
Risk of potential losses which could arise its liquidity if average withdrawal increased by six percent in
Low
from low liquidity in markets. consecutive five working days. Stress test result as on 31 December
shows that the bank will remain liquid under such stress.
The impact of interest rates on portfolios is minimal due to the
Risk arising from adverse movements in
Low Bank holding treasury bills and bonds with short maturities and
interest rates.
mainly for maintenance of SLR.
Contractual maturity mismatch of Assets and Liabilities reviewed
monthly and implications identified. Risk from such mismatch was
Risk arising from Maturity Mismatch Low
low in 2016 as the market was liquid and availability of customers’
deposit was adequate.
General appetite for Market Risk based We continuously review the Treasury Policy to incorporate
Low
on Treasury activity regulatory developments and internal decision-making process.
Close monitoring of equity portfolio and benchmark indices by
Equity Risk (Risk arising from adverse Investment Committee is the key tool for managing this risk.
Low
movements in stock markets) Adequate provision has been provided to offset the risk where
market value of equity is lower than the investment.
Bank mainly holds USD and there is a regulatory limit for Net
Open Position, time to time set by Bangladesh Bank. In 2016, local
currency appreciated against US dollar and it remained stable
Foreign Exchange Risk (arising from thereafter till late October when US dollar marked slight gains
unhedged foreign exchange positions and Low against BDT.
poor treasury controls)
Value at Risk (VaR) is calculated following historical value method
and limits are monitored regularly. If Fx VaR exceeds internal limit,
the issue is immediately raised to Managing Director & CEO.
Operational Risk Policy is reviewed and updated in line with
Effectiveness of Operational Risk Policy. Moderate
regulatory developments and internal decisions.
Bank’s operational risk management team collects operational loss
Risks arising from a poor Control
Low data from across all the business and operational functions of the
Environment.
bank.
Periodic review of information security is done to protect the
Technology Risk (arising from system
Moderate Bank’s data from unauthorized access,modification or deletion
breakdowns and disruptions)
and to ensure its confidentiality, integrity and availability.
High Impact Unforeseen Events Risk
Risk Assessment and Business Continuity Plans reviewed across
arising due to lack of preparedness to Moderate
the Bank, including ITD is aster Recovery Plan.
natural disasters and terrorism.
Risk arising from inadequate risk Bank is working to introduce internal loss limit to track actual loss
Moderate
mitigation strategies. with the given appetite set by the Board of Directors.
Talent sourcing, development, retention of top performers in
People Risk(arising from inability to
Low all departments are key focus areas. Promoting leadership and
attract and retain skilled people)
succession planning are key mitigate of people risk.
KRIs on security service provider such as number of guards on
Risk arising from outsourced security
Low duty, shifts worked monitored and feedback given to service
service Activities.
provider.
Review of legal charter and monitoring of court cases and recovery
Legal Risk(arising from litigation against process are regularly done by Special Asset Management Division.
Low
the bank or faulty legal documentation) Standard and Non-standard contracts and collateral documents
are vetted by panel lawyers.
Stress Testing
Stress testing is a simulation technique to determine the reactions of different financial institutions under a set of exceptional, but
plausible assumptions. EBL performs quarterly stress testing within the scope of Bangladesh Bank DOS (Department of Off-Site
Supervision) Circular: 01 dated 23 February 2011.
Summary of Stress Testing Results as on 31 December 2016 is presented below:
Capital to Risk Weighted Asset Ratio (CRAR) after application of Individual Shock
Extent of Shock CRAR after shock

Description of Individual Shock
Minor Moderate Major Minor Moderate Major
Performing loan directly downgraded to Bad &
3% 9% 15% 14.57% 13.48% 12.38%
Loss: Other Manufacturing Sector
Performing loan directly downgraded to Bad &
3% 9% 15% 14.91% 14.51% 14.12%
Loss: RMG sector
Increase in NPLs due to default of top 10 large
Top 3 Top 7 Top 10 10.30% 4.29% 0.77%
loan borrowers
Negative shift in NPLs categories 5% 10% 15% 14.87% 14.21% 13.93%
Decrease in the FSV of the collateral 10% 20% 40% 14.97% 14.84% 14.57%
Increase in NPL (Additional from UC Loan) 3% 9% 15% 13.23% 9.09% 3.99%
Interest Rate movement
Change in interest rate 14.90% 14.70% 14.50%
1% 2% 3%
Currency Exch. rate decreased by
Change in foreign exchange rate 15.09% 15.07% 15.06%
5% 10% 15%
Stock price of EBL’s investment
Equity shock portfolio decreased by 14.94% 14.78% 14.45%
10% 20% 40%
CRAR after application of Credit Shock due to downgrade of External Rating
CRAR after shock
Description of Individual Shock
Minor Moderate Major
Balance Sheet Exposure 14.90% 14.70% 14.50%
Off Balance Sheet Exposure 15.02% 14.94% 14.85%
Comprehensive Risk Management Report:

Risk Management Report is prepared on monthly interval to record 81 risks related issues of credit, market and operational risk
across the Bank during the month and submitted towards Bangladesh Bank for all months other than June and December within
30 days following the month end. In addition, Comprehensive Risk Management Report (CRMR) is submitted to Bangladesh Bank
by August 10 (based on June 30 data) and February 10 (based on December 31 data). Bank Risk Management Committee (BRMC)
review these paper on monthly interval; recommend action plans to concern department for mitigating identified risk areas and
follow-up the implementation of previous recommendations.12 BRMC meetings were held during 2016.
MANAGEMENT OF NON-PERFORMING LOAN (NPL)

A Non-performing loan (NPL) is a financial asset of the bank Amount in BDT
that ceases to “perform” or generate income for the bank. NPL Particulars Million
to total loan is the single most important ratio (lower the better) 2016 2015
for a bank to measure its portfolio health or asset quality.NPL,
Opening balance 4,263.32 5,157.06
due to its wide-scale repercussions, has enormous potential
Add: Addition of NPL during the year 3,022.33 2,380.27
to deepen the severity and duration of financial crisis and to
complicate macro-economic management. A high volume of Less: Reduction during the year (3,189.65) (3,274.02)
NPLs causes a significant drag on a bank’s performance in the Closing balance (NPL) 4,096.01 4,263.32
form of: NPL ratio 2.69% 3.27%
g
Reduction in net interest income; Written off loans
g
Increase in impairments costs (provision or credit costs); It is the policy of the bank to write off bad debts which have little
g
Additional capital requirement for high-risk weighted prospect of recovery in regular course of business; where all
assets; possible recovery efforts have been exhausted including taking
g
Reduced risk appetite for new lending; and legal actions and for which the bank has already provided full
provision – it is those loans which would have, otherwise, only
g
Additional management time and servicing costs to resolve
been used to show the bank’s balance sheet chubbier.
the problem.
Cumulative amount of written off loans during the year 2016
Industry NPL
and 2015 is appended below:
After 2011, Non-performing loan started soaring due to
commodity market volatility, political instability and inadequate Amount in BDT
infrastructure facility that holds back growth opportunity of Particulars Million
investment. Changes in classification criteria (by central bank) 2016 2015
in 2012 in line with international standards and some big Opening balance 5,668.00 3,538.10
volume loan scams in few state-owned banks also fueled the Amount written off during the year 1,957.17 2,129.90
growth of NPL in the banking industry. Closing balance 7,625.17 5,668.00
Written off loan (net off recovery) 6,172.47 4,602.20
Full recovery effort continues for recovery of written off loans.
In 2016, BDT 410.60 million has been recovered from written
off loans.
Our approach/strategies to deal with NPL

g
A systematic, proactive and focused approach is imperative
for management of NPL and therefore, EBL vows to adopt
the best practices to do the same.
g
At EBL, NPL management entails two approaches:
a. Management of new NPL flow: Two critical steps in
However, rescheduling of loans, writing off fully provided controlling NPL flow –
NPLs and restructuring of large loans allowed by the central i) Robust underwriting criteria, policies and
bank in 2015 made banking industry NPL look slightly better procedures: The flow of new NPL is controlled by
in subsequent years. amending the risk appetite and lending underwriting
NPL at EBL criteria. Underwriting criteria, models, policies and
procedures and NPL management procedures are being
g
“Portfolio Health First”strategy of the bank helped achieve continuously reviewed and updated on the basis of
an enviable NPL ratio of 2.69% at year-end 2016, a marked actual performance.
improvement from 3.27% of year-end 2015, which is much
lower than the industry average. ii) Early alert system: A robust early warning system
is exercised to identify individual position and risk
g
A concerted effort by Business Divisions, Credit Risk segments in the portfolio for immediate attention and
and Special Asset Management Divisions under close remediation, with the goal of preventing these loans
supervision of Managing Director & CEO and effective from converting into NPLs.
oversight of the Board of Directors towards containing NPL
played a crucial role in achieving such a feat. b. Management of NPL stock: Five step NPL Management
methodology is being used for management of NPL Stock
Movement of NPL accounts during the year 2016 and 2015
as follows:
g
is appended below:
Key priorities for NPL management in 2017 g

Arresting new NPL flow and
• “Quality First, Revenue will Follow”would be the guiding g
Reducing NPL stock.
principle for management of credit portfolio of the bank in • Aligning underwriting criteria with the economy and
2017. industry condition, enhancing credit principles and
• Combating with NPL is a continuous process and there is bringing dynamism in recovery will be the strategic
no room for complacence in improving portfolio heath. priorities for NPL management in 2017.
• The Bank Management is committed to excel in NPL • It is the bank’s strategic intent to keep NPL ratio below
management by way of: 2.75% in the year 2017.
RECOVERY OF CLASSIFIED AND WRITTEN OFF LOANS

Industry overview and status of EBL collection and write-off costs. Sustainable differentiation comes
from intangibles like having an inspired group of committed
Banks in Bangladesh have been confronting the evils of rising people working together for a common cause.
default loans for quite some time. Financial health of the
banks more affected by this menace is deteriorating drastically. The major strategies and policies:
Effects of rising NPL is twofold: loss of revenues and increased
• Holding recovery committee meeting every month
provision charged.
involving senior management of the bank.
According to published information of Bangladesh Bank,
• Execution of law suits against the borrowers.
default loan stood at BDT 65,700 crore as on 30 September 2016,
which was 10.34% of the total outstanding loans. If the written- • Arrangement of regular meetings with panel lawyers to
off and rescheduled loans were taken into consideration, the speed up legal process.
sum would easily cross the BDT 110,000 crore-mark. However,
EBL default loan was BDT 484.81 Crore which was 3.33% of the • Involving third parties i.e. recovery agencies to give extra
total outstanding loans as of September 2016. With the whole- pressure on defaulted borrowers.
hearted efforts of management, the condition has improved • Running recovery campaign from time to time.
further and default loan reduced to BDT 409.60 crore with
NPL ratio of 2.69% as on 31 December 2016 (Industry NPL Steps taken in 2016 to recover classified and written
was 9.23% as on 31 December 2016). off loans
SAMD, the recovery engine of EBL The following initiatives have been taken by SAMD in 2016
to produce better result in collection and recovery to face the
Considering the gravity and impact of Non-performing
challenge of rising NPL trend:
Loan (NPL) in bank’s profitability, EBL formed Special Asset
Management Division (SAMD) in 2004 to look after Corporate • Engaged Recovery Agencies (3rd Party) side by side regular
& Medium segment NPL and now SAMD looks after NPL of all collection officials for collection.
segments and it is contributing to the bottom line of the bank
significantly. EBL has strengthened the SAM team and achieved • Brought back CNB recovery team under the umbrella of
significant growth in recovery from classified as well as written SAMD for efficient and effective monitoring.
off loans in 2016. • Holding regular follow-up meetings with Business, CRM
The major segments of SAMD are as follows: and Recovery team.
• Corporate & SME-Medium Team • Regular meetings with bank’s enlisted lawyers for having
update of the progress of cases filed for speedy disposal of
• CNB (loan, Cards) & SME-S Team the same.
• Legal Team • Sorting out the Classified and Written-off accounts which
are backed by good collaterals i.e. where the potentiality of
• MIS Team
recovery is higher.
Strategy and policy in action • Going for attachment of unencumbered assets of the
The mission of SAMD is to maintain a professional, cohesive defaulted borrowers.
team to ensure collection and recovery promptly with minimum
Recovery status at a glance

Particulars Year- 2014 Year-2015 Year- 2016
Written off loan recovery BDT 10.57 crore BDT 28.17 crore BDT 38.00 crore
Classified loan recovery BDT 43.60 crore BDT 49.90 crore BDT 72.20 crore
Total BDT 54.17 crore BDT 78.07 crore BDT 110.20 crore
Status of Legal Proceedings Strategic Outlook in 2017

Legal Unit of SAMD is now looking after 5,990 suits/cases filed • Overseeing unclassified overdue accounts from a single
against default borrowers involving an amount of BDT 1,730.67 point (SAM-Head Office) for close monitoring.
crore. 13 dedicated Law Officers are monitoring the said suits/
• Initiatives for reversing movements (SS, DF, and BL) of
cases as plaintiffs and complainants on behalf of the Bank. The
classified accounts.
mentioned suits/cases are filed and conducted by panel lawyers
of the Bank. Moreover, 211 Writ Petitions/Criminal Misc. Case/ • Engagement of separate team to expedite sale process of
Appeal is pending before the Supreme Court of Bangladesh. Non-banking Assets (NBA).
Collection performance highlights in 2016 • Assessment of viability of rescheduling classified loans in

compliance with regulatory guidelines supported by cash
• Disposal of highest number of High court cases (137 cases). flow of customer.
• Submitted 150 proposals to the Board and taken approval • Emphasizing to settle the accounts under suits/cases outside
thereof in a single month (December 2016) for compromise the court with the help of legal unit and panel lawyers.
settlement involving BDT 14.89 crore.
• Engagement of an institution for Alternative Dispute
• Ran a Recovery Campaign for SME-S and CNB- Loan and Resolution ‘BIAC’ for settlement of dispute/ recovery from
Cards during last quarter 2016. defaulting borrowers out of Court through negotiation.
• Arranged a half day workshop for relevant officials of • Strengthening activities to attach unencumbered assets of
SAMD conducted by District Judge and Additional District the default borrowers.
Judge.
DISCLOSURES ON RISK BASED CAPITAL (BASEL III)

Background (b) An outline of differences in the basis of consolidation
for accounting and regulatory purposes, with a brief
Use of excessive leverage, gradual erosion of level and quality description of the entities within the group (i) that are fully
of capital base, insufficient liquidity buffer, pro-cyclicality and consolidated; that are given a deduction treatment; and (ii)
excessive interconnectedness among systematically important that are neither consolidated nor deducted (e.g. where the
banks are identified as some of the major causes behind recent investment is risk-weighted).
financial crisis. Bank for International Settlements (BIS) came
up, in response, with a new set of capital and liquidity standards Entities within the group: The bank has four fully owned
in the name of Basel III. In compliance with the ‘Revised subsidiaries; three of them have been operational on the
Guidelines on Risk Based Capital Adequacy (RBCA)’ issued by reporting date. These are EBL Securities Limited, EBL
Bangladesh Bank in December 2014, banks in Bangladesh have Investments Limited and EBL Finance (HK) Limited. Although
formally entered into Basel III regime from 1 January 2015. the subscription of another fully owned subsidiary ‘EBL Asset
The new capital and liquidity standards have greater business Management Limited’ is completed, full-fledged operation of
implications for banks. this company is yet to start.
Eastern Bank Limited (EBL) has also adopted Basel III EBL Securities Ltd.: EBL Securities Limited (EBLSL), a
framework as part of its capital management strategy in line securities brokerage firm acquired in two phases, is a public
with the revised guideline. These Market discipline disclosures limited company having TRECs (Trading Right Entitlement
Certificate) and ordinary shares of both the bourses i.e. Dhaka
under Basel III are made following the same guidelines in
Stock Exchange (DSE) Ltd. and Chittagong Stock Exchange
order to complement the minimum capital requirements and
(CSE) Ltd. The principal activities of this subsidiary are buying,
the supervisory review process. Establishing a transparent and
selling and settlement of securities on behalf of investors and
disciplined financial market through providing accurate and
in its own portfolio. Registered office of EBLSL is located at 59,
timely information related to liquidity, solvency, performance
Motijheel C/A (1st Floor), Dhaka-1000.
and risk profile of a bank is another important objective of this
disclosure. EBL Investments Ltd: EBL Investments Limited (EBLIL) was
incorporated on 30 December 2009. It obtained required license
Consistency and Validation from BSEC in January 2013 and started full-fledged operations
The quantitative disclosures are made on the basis of of merchant banking, portfolio management, underwriting,
consolidated audited financial statements of EBL and its etc. from June 2013. Registered office of EBLIL is located at 59,
subsidiaries as at and for the year ended 31 December 2016. Motijheel C/A (1st Floor), Dhaka-1000.
They are prepared under relevant International Accounting EBL Finance (HK) Ltd.: EBL Finance (HK) Limited, the first
and Financial Reporting Standards as adopted by the Institute foreign subsidiary of EBL, was incorporated on 28 November
of Chartered Accountants of Bangladesh (ICAB) and related 2011 with Hong Kong (HK) authority. This subsidiary started
circulars/instructions issued by Bangladesh Bank from time its full-fledged business operations (i.e. offshore trade finance,
to time. The assets, liabilities, revenues and expenses of the advising, documents collection etc.) in Hong Kong during 2013
subsidiaries are combined with those of the parent company after obtaining all the required licenses from Bangladesh and
(EBL), eliminating inter company transactions. Assets of the HK authority. Registered office of EBL Finance (HK) Limited
subsidiaries are risk weighted and equities of subsidiaries are is Unit 1201, 12th Floor, Albion Plaza, 2-6 Granville Road,
crossed out with the investment of EBL while consolidating. Tsimshatsui, Hong Kong.
So, information presented in the ‘Quantitative Disclosures’
EBL Asset Management Ltd.: EBL Asset Management Limited
section can easily be verified and validated with corresponding
(EBLAML) was incorporated on 9 January 2011 to carry out
information presented in the consolidated and separate audited
asset management, capital market operation, equity investment
financial statements of EBL (Group and Bank) available on the etc. Subscription of this company was completed in 2015 but
website of the Bank (www.ebl.com.bd). The report is prepared full-fledged business operation will start after getting license
once a year and is available in the website. from BSEC.
A. Scope of application The financials are fully consolidated and all inter company
Qualitative Disclosures transactions and balances are eliminated.
(a) The name of the top corporate entity in the group to which (c) Any restrictions, or other major impediments, on transfer of
this guideline applies: funds or regulatory capital within the group.
The framework applies to Eastern Bank Limited (EBL) on The rules and regulations of BRPD of Bangladesh Bank that
govern ‘Single Borrower Exposure Limit’ for the customers
‘Consolidated Basis’ as there were foursubsidiaries of the
are equally applicable for the Bank in financing its own
Bank as on the reporting date i.e. 31December 2016.However,
subsidiaries. Bank is following latest Bangladesh Bank circular
‘Solo Basis’ information has been presented beside those of
in determining maximum amount of finance to the subsidiaries
‘Consolidated Basis’ to facilitate comparison.
of the Bank.
Quantitative Disclosures capital instruments eligible for inclusion in Common Equity

(d) The aggregate amount of surplus capital of insurance Tier-1, Additional Tier 1 or Tier 2.
subsidiaries (whether deducted or subjected to an alternative
As per Basel III guidelines, regulatory capital consists of Tier-
method) included in the capital of the consolidated group.
1 (Common Equity Tier 1 and Additional Tier 1) and Tier 2
Not Applicable.
capital.
B. Capital Structure
Conditions for maintaining regulatory capital: The Bank
Qualitative Disclosures complied with all the required conditions for maintaining
(a) Summary information on the terms and conditions of the regulatory capital as stipulated in the Basel III guidelines as per
main features of all capital instruments, especially in case of the following details:
Status of
Particulars
Compliance
The bank has to maintain at least 4.50% of total Risk Weighted Assets (RWA) as Common Equity Tier 1 capital Complied
Tier 1 capital will be at least 5.50% of the total RWA Complied
Minimum capital to RWA Ratio (CRAR) will be 10% Complied
Maximum limit of tier-2 capital: Tier 2 capital can be maximum up to 4% of the total RWA or 88.89% of CET-1,
Complied
whichever is higher
Quantitative Disclosures
BDT Million
Solo Consolidated
Particulars
(31-12-2016) (31-12-2016)
Common Equity Tier-1 (CET-1) Capital 17,258.21 17,518.85
Regulatory adjustments (1,180.57) (1,260.38)
Total Common Equity Tier -1 Capital 16,077.64 16,258.47
Additional Tier 1 Capital - -
Tier-2 Capital 7,293.37 7,293.37

Regulatory adjustments (898.94) -898.94
Total Tier-2 Capital 6,394.43 6,394.43
Total Regulatory Capital 22,472.07 22,652.90
C. Capital Adequacy dividend and statutory reserve transfer etc.) and occasional
issue of right shares to support incremental growth of Risk
Qualitative Disclosures
Weighted Assets (RWA). Besides meeting regulatory capital
(a) A summary discussion of the bank’s approach to assessing requirement, the Bank maintains adequate capital to absorb
the adequacy of its capital to support current and future material risks foreseen. Therefore, the Bank’s Capital to Risk
activities. Weighted Assets Ratio (CRAR) remains consistently within
Assessing regulatory capital in relation to overall risk exposures the comfort zone during 2016 (13% plus).The surplus capital
of a bank is an integrated and comprehensive process. EBL maintained by EBL will act as buffer to absorb all material risks
follows the ‘asset based’ rather than ‘capital based’ approach and to support the future activities. To ensure the adequacy of
in assessing the adequacy of capital to support current capital to support the future activities, the bank assesses capital
and projected business activities. The Bank focuses on requirements periodically considering future business growth.
strengthening risk management and control environment Risk Management Division (RMD) under guidance of the SRP
rather than increasing capital to cover up weak risk team/BRMC (Bank Risk Management Committee), is taking
management and control practices. EBL has been generating active measures to identify, quantify, manage and monitor all
most of its incremental capital from retained profit (stock risks to which the Bank is exposed to.
BDT Million
Solo Consolidated
Particulars
(31-12-2016) (31-12-2016)
Capital requirement for Credit Risk 12,648.58 12,559.23
Capital requirement for Market Risk 517.94 831.80
Capital requirement for Operational Risk 1,714.62 1,755.80
Minimum capital requirement (MCR) 14,881.15 15,146.83
Capital Conservation Buffer (@ 0.625% ) 930.07 946.68
Available Capital under Pillar 2 Requirement 6,660.86 6,559.39
Total capital maintained 22,472.07 22,652.90
Risk weighted assets 148,811.45 151,468.32
Capital to Risk Weighted Asset Ratio 15.10% 14.96%
Common Equity Tier-1 (CET-1) Capital Ratio 10.80% 10.73%
Tier-2 Capital Ratio 4.30% 4.22%
D. Credit Risk principles for identifying, measuring, approving, and managing

credit risk in the bank and is designed to meet the organizational
requirements that exist today as well as to provide flexibility
(a) General Disclosure for future. These policies represent the minimum standards
Credit risk is defined as the probability of failure of counter for credit extension by the bank, and are not a substitute of
party to meet its obligation as per agreed terms. Banks are very experience and good judgment.
much prone to credit risk due to its core activities i.e. lending Definitions of past due and impaired credit:
to corporate, Consumer, SME, another bank/FI. The main
objective of credit risk management is to minimize negative To define past due and impairment through classification and
impact through adopting proper mitigates and to limit credit provisioning, the bank follows Bangladesh Bank Circulars and
risk exposures within acceptable limit. Guidelines. General provisions ranging from 0.25% to 5% on
Credit risk management has been independent of origination unclassified loans (standard/SMA) and 1% on off balance-sheet
of business functions to establish better control and to reduce exposures and specific provisions on classified loans (20% for
conflicts of interest. The Head of Credit Risk Management substandard, 50% for doubtful and 100% for bad-loss) are
(HoCRM) has well-defined responsibility for management of made on the basis of quarter-end review by the management
credit risk. Final authority and responsibility for all activities and instructions contained in BRPD Circular no.14 dated 23
that expose the bank to credit risk rests with the Board of September 2012, BRPD Circular no.19 dated 27 December
Directors. The Board however delegated authority to the 2012, BRPD Circular no.16 dated 18 November 2014 and
Managing Director and CEO or other officers of the credit risk BRPD circular no.08 dated 2 August 2015. Provisions and
management division. interest suspense are separately shown under other liabilities as
The Board of Directors (BoD) sets credit policies and delegates per First Schedule of Bank Companies Act 1991 (amendment
authority to the management for setting procedures, which up to 2013), instead of netting off with loans. The summary of
together has structured the credit risk management framework some objective criteria for loan classification and provisioning
in the bank. The Credit Policy Manual contains the core requirement is as below:
Loans Classification
Sub Standard Doubtful Bad & Loss
Type of Facility
Overdue Provision Overdue Period Provision Overdue Provision
Period (%) (%) Period (%)
Continuous Loan & 3 months or more but 6 months or more but 9 months or
20% 50% 100%
Demand Loan less than 6 months less than 9 months more
Fixed Term Loan of 3 months or more but 6 months or more but 9 months or
20% 50% 100%
more than Tk. 10 lac less than 6 months less than 9 months more
Fixed Term Loan up to 6 months or more but 9 months or more but 12 months or
20% 50% 100%
Tk.10lac less than 9 months less than12 months more
12 months or more
Short Term Agricultural 36 months or more but 60 months or
but less than 36 5% 5% 100%
& Micro Credit less than 60 months more
months
Specific provisions for classified loans and general provisions for unclassified loans and advances and contingent assets are measured
following BB prescribed provisioning rates as mentioned below:
Heads Rates of provision
General provision on:
Unclassified (including SMA) general loans and advances 1.00%
Unclassified (including SMA) loans to small and medium enterprises 0.25%
Unclassified (including SMA) loans to BHs/MBs/SDs against shares etc. 2.00%
Unclassified (including SMA) loans for housing finance and on loans for professionals 2.00%
Unclassified consumer financing other than housing finance and loans for professionals 5.00%
Short term agri credit and micro credit 2.50%
Off balance sheet exposures 1.00%
Specific provision on:
Substandard loans and advances other than short term agri credit and micro credit 20.00%
Doubtful loans and advances other than short term agri credit and micro credit 50.00%
Bad & loss loans and advances 100.00%
Substandard & Doubtful short term agri credit and micro credit 5.00%
Bad & Loss short term agri credit and micro credit 100.00%
(b) Total gross credit risk exposures (by major types) of 31-12-16:
BDT Million
Particulars Amount
Continuous loan (CL-2)
Consumer Finance (CF) 4,430.28
Small & Medium Enterprise (SMEF) 3,281.73
Loans to BHs/MBs/SDs against shares 935.26
Other than SMEF, CF, BHs/MBs/SDs 5,980.48
14,627.74
Demand loan (CL-3)
Small & Medium Enterprise (SMEF) 5,011.22
72,959.69
Term loan (CL-4)
Consumer Finance (including staff, other than HF) 8,094.48
Housing Finance (HF) 1,513.25
Small & Medium Enterprise 13,596.37
62,394.04
Short term agri credit and micro credit (CL-5)
Short term agri credit 2,102.22
2,102.22
Total 152,083.69
(C) Geographical distribution of exposures of 31-12-16:
Division Amount
Dhaka Division 105,905.42
Chittagong Division 40,220.17
Sylhet Division 832.41
Rajshahi Division 2,401.19
Khulna Division 1,538.26
Rangpur Division 360.54
Barisal Division 131.94
Mymensingh Division 693.76
Total 152,083.69
(d) Sector wise exposure of Total loan:
BDT Million
Particulars 31-12-2016 Mix (%)
Commercial and trading 25,952.04 17.06%
Construction 2,976.99 1.96%
Cement and ceramic industries 5,027.42 3.31%
Chemical and fertilizer 1,813.98 1.19%
Sugar and edible oil refinery 2,391.56 1.57%
Crops, fisheries and livestock 3,226.08 2.12%
Food and allied industries 5,137.95 3.38%
Electronics and electrical goods 2,803.89 1.84%
Individuals 20,680.89 13.60%
Pharmaceutical industries 2,009.48 1.32%
Readymade garments industry 19,932.39 13.11%
Ship breaking industry 6,404.52 4.21%
Metal and steel products 13,796.49 9.07%
Transport and e-communication 7,666.59 5.04%
Textile mills 7,074.91 4.65%
Power and fuel 2,374.95 1.56%
Rubber and plastic industries 2,971.49 1.95%
Agri and micro credit through NGO 6,673.39 4.39%
Other manufacturing or extractive industries 4,717.63 3.10%
Others 8,451.05 5.56%
Total 152,083.69 100.00%
(e) Residual contractual maturity of credit exposure of 31-12-16:

BDT Million
Particulars Amount
On demand 5,316.97
In not more than one month 12,474.10
In more than one month but not more than three months 24,605.45
In more than three months but not more than one year 53,706.21
In more than one year but not more than five years 50,598.20
In more than five years 5,382.77
Total 152,083.69
(f) Sector wise exposure of classified loans:

BDT Million
2016
Particulars
Amount Mix (%)
Commercial and trading 1,651.71 40.32%
Sugar, edible oil refinery & food processing 7.15 0.17%
Crops, fisheries & livestock 1.62 0.04%
Electronics & electrical goods 22.77 0.56%
Individuals 337.74 8.25%
Readymade garments industry 166.91 4.07%
Ship breaking industry 717.82 17.52%
Metal & steel products 11.41 0.28%
Power & fuel 156.80 3.83%
Transport & e-communication 355.57 8.68%
Textile mills 270.55 6.61%
Agri & micro credit through NGO 15.97 0.39%
Others 380.00 9.28%
Total 4,096.01 100.00%
(g) Gross Non-Performing Assets (NPAs)

On the reporting date i.e. 31 December 2016, Gross Non-Performing Assets stood at BDT 4,096 million.
Non-Performing Assets (NPAs) to Outstanding Loans & advances
On the reporting date i.e. 31 December 2016, Non-Performing Assets (NPAs) to Outstanding Loans & advances was 2.69%.
Movement of Non-Performing Assets (NPAs)
BDT Million
Additions during the year 3,022.33 2,380.28
Reductions during the year (3,189.65) (3,274.02)
Closing balance 4,096.01 4,263.33
Movement of Specific Provisions for NPAs (Provisions for classified loans)
BDT Million
On fully provided debt written off during the year (1,628.59) (1,890.74)
On recovery from loans written off earlier 380.02 281.71
Specific provision for the year 1,902.68 2,020.59
Provision held at the end of the year 3,474.76 2,820.64
E. Equities: Disclosures for Banking Book Positions and subscription for private placement). Unquoted securities
are categorized as banking book exposures which are further
subdivided into two groups: unquoted securities which are
Differentiation between holdings on which capital gains are invested without any expectation that these will be quoted in
expected and those taken under other objectives including for near future (i.e. held to maturity) and securities that are acquired
relationship and strategic reasons under private placement or IPO and are going to be traded in
Investment in equity securities by EBL is broadly categorized the secondary market after completing required formalities.
into two types: Quoted securities (Ordinary shares, Mutual Usually these securities are held for trading or investment for
Funds) and Un-quoted securities (including preference share making capital gains.
Discussion of important policies covering the valuation and accounting of equity holdings in the banking book.
Initial Measurement after initial

Investment class Recording of changes
recognition recognition
Lower of cost or market value Loss (net off gain) to profit and loss account
Shares (Quoted) * Cost
(overall portfolio) but no unrealized gain booking.
Lower of cost or Net Asset Loss to profit and loss account but no
Shares (Unquoted)* Cost
Value (NAV) unrealized gain booking.
Lower of cost and (higher of Loss (net) to profit and loss account but no
Mutual fund (Closed-end) * Cost
market value and 85% of NAV) unrealized gain booking.
* Provision for shares against unrealized loss (gain net off) has been made according to DOS circular no. 4 dated 24 November 2011
and for mutual funds (closed-end) as per DOS circular letter no. 3 dated 12 March 2015 of BB.
Value disclosed in the balance sheet of investments, as well as the fair value of those investments; for quoted securities
BDT Million
Solo (Bank) Consolidated
Particulars
At Cost At Market Value At Cost At Market Value
Value of Quoted shares and Mutual Funds 2,556.22 2,266.64 4,019.42 3,780.32
Value of Unquoted shares and Mutual Funds 31.80 - 59.80 -
Particulars Solo (Bank) Consolidated

The cumulative realized gains (losses) arising from sales and liquidations in the reporting
(152.83) (101.73)
period/Net gain/(loss) on sale of quoted securities
Total unrealized gains (losses) / Provision for revaluation of shares (net) 79.97 91.62
Total latent revaluation gains (losses) - -
Any amount of the above included in Tier 2 capital - -
Capital charge required for quoted securities: 453.33 767.19

Specific risk 226.66 383.59
General market risk 226.66 383.59
F. Interest rate risk in the banking book (IRRBB) Assumptions: For Gap analysis, bank considers the following:
Qualitative Disclosures g For fixed-rate contract, remaining maturity is considered.
(a) General Disclosure g For contracts with provision of re-pricing, time remaining
for next re-pricing is considered.
Interest Rate Risk is the risk which affects the Bank’s financial
condition due to changes of market interest rates. Changes g For assets and liabilities which lack definitive re-pricing
in interest rates affect both the current earnings (earnings interval or for which there is no stated maturity, bank
perspective) and also the net worth of the Bank (economic determines the core and volatile portion. For assets, volatile
value perspective). Bank assesses the interest rate risk both in portion is bucketed till 3 months using historical repayment
earning and economic value perspective. behavior and stable portion is bucketed in 6-12 months
bucket. For liabilities, volatile portion is bucketed till 1 year
The process of interest rate risk management by the bank using historical withdrawal behavior and stable portion is
involves determination of the business objectives, expectation bucketed in over 1 year segment.
about future macro-economic variables and understanding the
money markets and debt market in which it operates. Interest Also, following assumptions are met:
rate risk management also includes quantifying the appetite for g The main assumption of gap analysis is that interest rate
market risk to which bank is comfortable. moves on a parallel fashion. In reality however, interest rate
The Bank uses the following approach to manage interest rate does not move upward.
risks inherent in the Balance sheet: g Contractual repayment schedule is met.
Simple Gap Analysis: Traditional Gap analysis of on-balance g Re-pricing of assets and liabilities takes place in the
sheet Asset Liability Management (ALM) involves careful midpoint of time bucket.
allocations of assets and liabilities according to re-pricing/
maturity buckets. This approach quantifies the potential change g The expectation that loan payment will occur in schedule.
in net interest income using a specified shift in interest rates, Quantitative Disclosures:
e.g. 100 or 200 basis points, or a simulated future path of
interest rates. Funding Gap Analysis:
Funding GAP Analysis attempts to determine the potential
impact on net interest income (NII) due to changes in interest
rate.
Result of Funding Gap analysis as on December 31, 2016:
Particulars 3 months 6 months

For 1% increase/decrease in interest rate, impact on NII BDT ± 19.20 Million BDT ± 95.40 Million
For 2% increase/decrease in interest rate, impact on NII BDT ± 38.50 Million BDT ± 190.80 Million
Duration GAP Analysis: Market Value of Equity of the bank under different interest rate
The focus of the Duration Analysis is to measure the level of scenarios. ALCO monitors the Leveraged Liability Duration
a bank’s exposure to interest rate risk in terms of sensitivity of and duration gap of the total bank balance sheet on a quarterly
Market Value of its Equity (MVE) to interest rate movements. basis to assess the impact of parallel shift of the assumed yield
Duration Gap can be used to evaluate the impact on the
curve.
Particulars Dec-31, 2015 Dec-31, 2016

Duration of Asset 1.48 1.34
Duration of Liabilities 0.84 1.71
Duration Gap 0.75 -0.18
Changes in Market value of Equity due to an increase in interest Rates

1% 2% 3%
BDT 311.30 Million BDT 622.70 Million BDT 934.0 Million
G. Market Risk risk and capital requirement is assessed as per standardized

approach of Basel III.
Methods used to measure Market Risk: Bank applies maturity
Market Risk: Market Risk is defined as the possibility of loss due
method in measuring interest rate risk in respect of securities in
to changes in the market variables. It is the risk that the value
trading book. The capital charge for entire market risk exposure
of on/off-balance sheet positions will be adversely affected by
movements in equity price, interest rate and currency exchange is computed under the standardized approach using the
rates. The objective of our market risk policies and processes maturity method and in accordance with the guideline issued
is to obtain the best balance of risk and return whilst meeting by Bangladesh Bank.
customers’ requirements. The primary categories of market risk Market Risk Management System: To manage the interest rate
for the bank are: risk, ALCO regularly monitors various ratios and parameters.
Interest rate risk: Arising from changes in yield curves, credit Of the ratios, the key ratios that ALCO regularly monitors are
spreads and implied volatilities on interest rate options. Liquidity Coverage Ratio (LCR), Net Stable Funding Ratio
(NSFR), and Maximum Cumulative Outflow (MCO), Liquid
Currency exchange rate risk: Arising from changes in exchange
asset to total assets, Volatile liability dependency ratio, Snap
rates and implied volatilities on foreign exchange options.
liquidity ratio and Short term borrowing to Liquid assets ratio.
Equity price risk: Arising from changes in the prices of equities, ALCO also regularly monitors the interest rate sensitive gap
equity indices, equity baskets and implied volatilities on related and duration gap of total portfolio.
options.
To manage foreign exchange risk of the bank, the bank has
Bank has a comprehensive Treasury Trading Policy, Asset- adopted the limit set by central bank to monitor foreign
Liability Management Policy, Investment Policy approved by exchange open positions. Foreign exchange risk is computed on
the BoD to assess, monitor and manage all the above market the sum of net short positions or net long positions, whichever
risks. Various internal limits have been set to monitor market is higher.
Value-at-Risk estimates (Loss in domestic currency) presented below:
Particulars Time horizon

Confidence level 1 day 2 days 3 days 4 days 5 days
90% 235,425 350,485 478,434 602,845 709,645
95% 307,740 475,352 574,348 719,069 918,536
99% 469,061 574,348 773,070 957,631 976,691
To manage equity risk, the Investment Committee of the bank takes prudent decisions complying sectorial preferences as per
investment policy of the bank and capital market investment limit set by BB.
Quantitative Disclosures:
Capital charge (Solo basis) for market risk on the reporting date 31-12-16:
BDT Million
Particulars Amount
a Interest rate risk 10.31
b Equities 453.33
c Foreign exchange risk 54.30
d Commodity risk
Total 517.94
H. Operational Risk Fraud Risk is the risk of incurring losses as a result of an
Qualitative Disclosures intentional act or omission by a third party involving
dishonesty, for personal and/or business gain, to avoid personal
Operational Risk: Operational risk is the risk of loss arising and/or business loss, or to conceal improper or unauthorized
from fraud, unauthorized activities, error, omission, inefficiency, activity. This includes facilitation, misrepresentation, money
systems failure or external events. It is inherent in every laundering, terrorist financing, theft, forgery and cyber-crime.
business organization and covers a wide spectrum of issues.
We seek to minimize exposure to operational risk, subject to Business Continuity Risk is the risk of incurring losses
cost benefit trade-offs. The bank captures some identified risk resulting from the interruption of normal business activities,
events associated with all functional departments of the bank i.e. interruptions to our infrastructure as well as to the
through standard reporting format. infrastructure that supports our businesses.
Views of Board on system to reduce Operational Risk: Information Security Risk is the risk of an event which could
The policy for measuring and managing operational risks result in the compromise of organizational assets, including,
is approved by the Board in line with the relevant guidelines but not limited to, unauthorized use, loss, damage, disclosure
of Bangladesh Bank. Audit Committee of the Board directly or modification of organization assets. It includes the risk of
oversees the activities of Internal Control and Compliance cyber threats on the organization.
Division to protect against all operational risks. As a part Regulatory Compliance Risk is the risk of incurring regulatory
of continued surveillance, the management committee sanctions (including restrictions on business activities,
(MANCOM), Bank Risk Management Committee and Risk fines or enhanced reporting requirements), financial and/or
Management Division regularly review different aspects of reputational damage arising from our failure to comply with
operational risks and suggest formulating appropriate policies, applicable laws, rules and regulations.
tools & techniques for mitigation of operational risk. Vendor Risk arises from adverse events and risk concentrations
Policies and processes to mitigate operational risk: due to failures in vendor selection, insufficient controls and
Operational Risk Management Unit is primarily responsible oversight over a vendor and/or services provided by a vendor
for risk identification, measurement, monitoring, control, and and other impacts to the vendor itself.
reporting of operational risk. This unit identifies risk issues
Approach for calculating capital charge for operational
primarily through review of Departmental Control Function
risk: The bank applies ‘Basic Indicator Approach’ of Basel III
Check List (DCFCL) and reports to Head of ICCD (Internal
as prescribed by BB in revised RBCA guidelines. Under this
Control and Compliance Division). DCFCL is a self-assessment
approach, banks have to calculate average annual gross income
process for detecting ‘high’ risk areas and finding mitigation
(GI) of last three years and multiply the result by 15% to
of those risks. The committee titled ‘Bank Risk Management
determine required capital charge. Gross Income is the sum of
Committee (BRMC)’ also oversees the operational risk issues.
‘Net Interest Income’ and ‘Net non-interest income’ of a year or
BRMC analyzes ‘high’ and ‘moderate’ risk indicators and sets
‘Total Operating Income’ of the bank with some adjustments as
responsibility for specific people to resolve the issues.
noted below. GI shall:
Performance gap of executives and staffs: EBL is an equal
• Be gross of any provision (e.g. for unpaid interest),
opportunity employer. It recognizes the importance of having
the right people at right positions to achieve organizational goals. • Be gross of operating expenses, including fees paid to
Our recruitment and selection is governed by the philosophy outsourcing service providers,
of fairness, transparency and diversity. Understanding what is • Include lost interest i.e. interest suspense on classified loans
working well and what requires further improvement is essential (SS, DF, BL).
to our performance management system. The performance
Quantitative Disclosures:
management process aims to clarify what is expected from
employees as well as how it is to be achieved. BDT Million
Our learning and development strategy puts special focus on Solo
Particulars Consolidated
continuous professional development to strengthen individuals’ (Bank)
skill set by removing weaknesses to perform the assigned job Capital charge for operational risk 1,755.80 1,714.62
with perfection. We have a wide range of internal and external
training programs to enhance capabilities as well as minimize I) Liquidity Ratio
performance gap that will contribute more to bottom line. Qualitative Disclosures
Peoples’ performance is assessed on the bases of performance Views of BoD on System to reduce liquidity risk
objectives and key performance indicators (KPI) set at the Liquidity Risk is the risk that the bank does not have sufficient
beginning of each year. Decisions related to rewards and financial resources to meet its obligations as they fall due or will
recognitions for the employees are taken on the bases of how have to do so at excessive cost. The risk arises from mismatch
well the assigned KPIs are met. in the timing of cash flows. The intensity and sophistication
Potential external events: The overall environment within of liquidity risk management system depends on the nature,
which a bank operates creates certain externalities which could size and complexity of a bank’s activities. Sound methods in
affect business performance directly such as: measuring, monitoring and controlling liquidity risk is critical
to sustainability of the bank. Therefore, The Board of Directors Particulars Amount

of the bank set policy, different liquidity ratio limits, and risk Available amount of stable funding 147,613
appetite for liquidity risk management.
Required amount of stable funding 143,869
Methods used to measure liquidity risk Net Stable Funding Ratio (%) 102.60%
The tools and procedures deployed by EBL to manage liquidity J) Leverage Ratio
risk are comprehensive. The measurement tools used to assess
liquidity risks are: Qualitative Disclosures
• Statutory Liquidity Requirement (SLR) Views of BoD on System to reduce excessive leverage
• Cash Reserve Ratio (CRR) Leverage ratio is the ratio of Tier 1 capital to total on and off-
balance sheet exposures. It was introduced into the Basel III
• Asset to Deposit Ratio (ADR)
framework as a non-risk based backstop limit, to supplement
• Structural Liquidity Profile (SLP) risk-based capital requirements. EBL has embraced this ratio
• Maximum Cumulative Outflow (MCO) along with Basel III guideline as a credible supplementary
• Liquidity Coverage Ratio (LCR) measure to risk based capital requirement and assess the ratio
periodically.
• Net Stable Funding Ratio (NSFR)
Policies and processes for managing excessive on and off-
• Volatile Liability Dependency Ratio
balance sheet leverage
• Liquid Asset to Total Deposit Ratio
Revised guideline of RBCA based on Basel III as provided by
• Liquid Asset to Short Term Liabilities BRPD of Bangladesh Bank is followed by EBL while managing
Liquidity risk management system excessive on and off-balance sheet leverage of the bank. As per
Responsibility of managing liquidity lies with Asset Liability RBCA leverage ratio shall be Tier I Capital divided by Total
Committee (ALCO) of the bank which meets at least once in Exposure after related deductions.
every month. Asset and Liability Management (ALM) desk Approach for calculating exposure
closely monitors and controls liquidity requirements on a daily The Bank has calculated the regulatory leverage ratio as per
basis by proper coordination of funding activities. A monthly the guideline of Basel III. The numerator, capital measure, is
projection of fund flows is reviewed in ALCO meeting regularly. calculated using the new definition of Tier I capital applicable
Policies and processes for mitigating liquidity risk from 01 January 2015. The denominator, exposure measure, is
In order to develop comprehensive liquidity risk management calculated on the basis of the Basel III leverage ratio framework
framework, EBL implemented Contingency Funding Plan as adopted by Bangladesh Bank.
(CFP), which is a set of policies and procedures that serves as Quantitative Disclosure:
a blueprint for the bank to meet its funding needs in a timely
Leverage Ratio (Solo Basis) on 31 December 2016 is given
manner and at a reasonable cost. CFP also ensures:
below:
• Reasonable liquid assets are maintained;
BDT Million
• Measurement and projection of funding requirements in
different scenarios; and Particulars Amount
• Management of access to funding sources. On balance sheet exposure (A) 207,710.70
Maturity bucket of cash inflows and outflows is an effective tool
Off balance sheet exposure (B) 46,600.95
to determine bank’s cash position; that estimates cash inflows
and outflows with net deficit or surplus (GAP) both on a day to Regulatory Adjustments (C) 1,180.57
day basis and over a series of specified time periods. A bucket
wise (e.g. call, 2-7 days, 1 month, 1-3 months, 3-12 months, Total exposure (A+B-C) 253,131.08
1-5 years, over 5 years) maturity profile of the assets and
liabilities is prepared to understand mismatch in every bucket. Leverage Ratio 6.35%
A structural maturity ladder or profile is prepared periodically
following guidelines of the Bangladesh Bank. K. Remuneration
Quantitative Disclosures: Qualitative Disclosures
Liquidity Coverage Ratio and Net Stable Funding Ratio as on EBL wants to attract, retain and motivate top talents to meet its
31 December 2016 are given below: challenging objectives. The bank offers a competitive pay and
BDT Million benefits package to fulfill the said objective. Our compensation
Particulars Amount and benefits strategy combines the need to maintain a high
Stock of High quality liquid assets 30,086 performance culture along with market competitiveness. A
bi-annual benchmarking exercise makes sure that employees’
Total net cash outflows over the next 30 29,021
calendar days pay is competitive. Moving between pay scales depends on the
individuals’ performance and we reward employees accordingly.
Liquidity Coverage Ratio (%) 103.67%
a) Information relating to the bodies that oversee • The grade-wise scale of pay and other allowances of
remuneration. employees are determined by the competent authority from
Name, composition and mandate of the main body overseeing time to time.
remuneration. • Salary revision is decided by the Managing Director & CEO
EBL has a Board-approved People Management Policy that with the approval of the Board of Directors based on:
outlines the rules relating to compensation structure and the a. Individual Performance
benefit package for the people and gives detailed procedures for b. Market movement
exercising them.
c. The Bank’s affordability
External consultants whose advice has been sought, the body
d. Individual’s relative position in a particular salary range
by which they were commissioned, and in what areas of the
remuneration process. e. COLA (Cost Of Living Adjustment)
Presently EBL does not have any separate body or external Any request for information relating to salary should be directed
party to oversee remuneration. to the Human Resources Division by appropriate authority.
A description of the scope of the bank’s remuneration policy (e.g. Whether the remuneration committee reviewed the firm’s
by regions, business lines), including the extent to which it is remuneration policy during the past year, and if so, an overview
applicable to foreign subsidiaries and branches. of any changes that were made.
The said policy applies to all the employees of the bank. Remuneration structure of the bank is reviewed as and when
management deem appropriate to allow for adjustments in
A description of the types of employees considered as material the cost of living and market forces pertaining to the banking
risk takers and as senior managers, including the number of industry. HR Division initiates the process, makes proposal to
employees in each group. Board for approval.
All of the Management Committee (MANCOM) members A discussion of how the bank ensures that risk and compliance
are considered as material risk takers and are mostly Senior employees are remunerated independently of the businesses they
Managers. MANCOM is the highest decision and policy oversee.
making authority of the management comprising of MD &
EBL ensures that Risk and Compliance employees are
CEO and different business and support unit heads.
remunerated independently as the remuneration package
b) Information relating to the design and structure of is set by the management and applicable for all employees
remuneration processes. irrespective of profession or area.
An overview of the key features and objectives of remuneration C) Description of the ways in which current and future risks
policy are taken into account in the remuneration processes.
Remuneration policy of the bank has been framed to maintain An overview of the key risks that the bank takes into account
a performance based reward policy which recognizes the when implementing remuneration measures.
contribution of each of the employees of the bank.
In a highly competitive financial sector like ours, remuneration
EBL’s reward package consists of the following key elements: system is mostly dictated by market forces. Demands for efficient
Fixed pay: and skilled employees tend to increase as disproportionate
number of financial institutions chase them. As a result,
The purpose of fixed pay is to attract and retain employees
compensation package for skilled resources is relatively high
by paying competitive pay for the role, skills and experience
and salary revision takes place more frequently than other
required for the business. This includes salary, fixed pay
industries. Excessive turnover of human resources, skill
allowance, and other cash allowances. These payments are fixed
shortage, inability to attract and retain good people are some of
and do not vary with performance.
the risks banks have to consider with. However, EBL designed its
Benefits: remuneration package as per market driven strategy to ensure
EBL provides benefits in accordance with local market practice. right package for the right people. On top of it, in designing
This includes subsidized loans (car, house building), hospital remuneration package, EBL ensures fair treatment, internal
bill reimbursement, TA/DA etc. equity and external competitiveness to retain good resources.
Annual Incentives: An overview of the nature and type of the key measures used to
take account of these risks; including risks difficult to measure
EBL provides annual incentives to drive and reward
(values need not be disclosed).
performance based on annual financial and non-financial
measures consistent with the medium to long-term strategy, Market survey is conducted periodically to compensate
shareholder interest and adherence to EBL values. employees for their expertise, time, mental and social
engagement with the organization.
Regulations of Pay and Allowances
A discussion of the ways in which these measures affect
• Salaries are confidential between the concerned employees
remuneration.
and Human Resources Division.
These measures ensure that the remuneration process of EBL is: base salary and different benefit packages mentioned earlier.
• Right employees are getting right package as per their Therefore, EBL does not use any form of variable remuneration
performance, quality of experience, training received and in its remuneration process. However, EBL practice sales
special expertise. commission based remuneration process for contractual staffs.
• Ensure internal & external equity Quantitative Disclosures:
A discussion of how the nature and type of these measures has Number of meetings held by the main body overseeing
changed over the past year and reasons for the change, as well remuneration during the financial year and remuneration paid
as the impact of changes on remuneration. to its member:
No changes took place. No such meeting as there is no designated remuneration
committee. HR Division is assigned to initiate any change
(d) Description of the ways in which the bank seeks to link proposal on remuneration as per the People Management
performance during a performance measurement period Policy of the bank and get necessary approval from BoD.
with different levels of remuneration.
Number of employees having received a variable remuneration
An overview of main performance metrics for bank, top-level award during the financial year:
business lines and individuals.
Not applicable*
At EBL, salary increment and promotion is purely linked with
performance. As per policy, performance evaluation is done Number and total amount of guaranteed bonuses awarded during
for all permanent employees once in every year. In addition to the financial year. :
yearly review of performance, a mid-year review is also carried Two basics for two festivals.
out. Performance evaluation is done on the below parameter: Number and total amount of sign-on awards made during the
• Business Objectives financial year. Not applicable*
• Personal Development Objective Number and total amount of severance payments made during
• Management Objectives the financial year. Not applicable*
A discussion of how amounts of individual remuneration are Total amount of outstanding deferred remuneration, split into
linked to bank-wide and individual performance. cash, shares and share-linked instruments and other forms. Not
applicable*
Overall performance is evaluated as per above mentioned
parameter and individuals are rated accordingly from 1 Total amount of deferred remuneration paid out in the financial
(highest) to 5 (lowest). Increment is linked with the rating year. Not applicable*
employees receive during the performance evaluation process. Breakdown of amount of remuneration awards for the financial
A discussion of the measures the bank will, in general, implement year to show:
to adjust remuneration in the event that performance metrics are • fixed and variable.
weak. • deferred and non-deferred.
No adjustment took place as EBL maintains a standard • different forms used (cash, shares and share linked
performance evaluation process. instruments, other forms).
(e) Description of the ways in which the bank seek to adjust Not applicable.
remuneration to take account of longer-term performance.
Quantitative information about employees’ exposure to implicit
A discussion of the bank’s policy on deferral and vesting of variable (e.g. fluctuations in the value of shares or performance units)
remuneration and, if the fraction of variable remuneration that and explicit adjustments (e.g. claw-backs or similar reversals or
is deferred differs across employees or groups of employees, a downward revaluations of awards) of deferred remuneration and
description of the factors that determine the fraction and their retained remuneration:
relative importance.
• Total amount of outstanding deferred remuneration and
Not applicable. retained remuneration exposed to ex post explicit and/or
A discussion of the bank’s policy and criteria for adjusting deferred implicit adjustments.
remuneration before vesting and (if permitted by national law) • Total amount of reductions during the financial year due to
after vesting through claw back arrangements. e post explicit adjustments.
Not applicable. • Total amount of reductions during the financial year due to
(f) Description of the different forms of variable ex post implicit adjustments.
remuneration that the bank utilizes and the rationale for Not applicable.
using these different forms.
Note: Till 2016, People management Policy of EBL does not
An overview of the forms of variable remuneration offered (i.e. have provision of any kind of variable remuneration, deferred
cash, shares and share-linked instruments and other forms). remuneration, severance payment, sign-on awards or other
EBL recognizes the effort and performance of its employees forms of remuneration as mentioned above for its permanent
based on its People Management Policy which consist of staff.
SUSTAINABILITY REPORT
All our thoughts and actions stem from our sense

of responsibility toward our stakeholders. With
our robust monitoring system we create trust in
the reliability, transparency, and self-controlling
capabilities of our company and we strongly believe
that all of which are essential for sustaining success.
We are commitment to long-term environmental
sustainability. This includes reducing the bank’s own
impact and supporting innovative new technology.
Our social commitment is also an integral part of our
business philosophy.
132 Annual Report 2016 Eastern Bank Ltd. SUSTAINABILITY REPORT
SUSTAINABILITY REPORT
Foreword
Every business must have a social purpose as well as a We believe education is the best way to raise aspirations and
commercial one. EBL’s social purpose is to serve the community provide opportunities for everyone, whatever their background.
by doing ethical businesses. When we disburse a home loan, we It is essential for developing free, creative and fair societies. Our
create a home. When we lend to a small business, we support support for innovation, science and research contributes to the
the creation of a job. These are profound responsibilities. Today,
discovery of solutions for humanity’s major problems. EBL also
technology is enabling us to fulfill our purpose at ever greater
scale. The adoption of smart phones and digital technology contributes to a wide range of local initiatives in areas such
is driving changes in consumer preferences. Every day, we as donating Bi-Cycle to poor school going girls at northern
are discovering new ways to engage with each other and with district, for education of disable children, entrepreneurship,
businesses. financial literacy, art and culture in the communities where we
operate. We also strive to expand access to financial tools and
This revolution is opening up tremendous opportunities for
society as well as for EBL. We can communicate more easily, services. EBL’s small credit program support some of the most
learn more rapidly, and deliver better products and services to underprivileged social groups by doing what banks do best:
more people than ever before. There are now many brilliant funding businesses, no matter how small they might be.
entrepreneurial minds, and many brilliant startups focused We are equally committed to protecting our environment.
on improving financial technology. As a Bank with 427,902
We have updated and enhanced our sustainability policies
customers and 2,671 employees, we can adopt and distribute
in sensitive sectors. We have brought our policies up to meet
at scale. Technology is expanding our reach. We can lend more
to families and businesses and help societies to grow. We are higher standards of international business and to align them
already playing a major part in this revolution and want to do better with our own corporate culture. Our policies are applied
even more. to more activities in each sector and to more customers, not just
those seeking finance, but also socially responsible businesses
Our success is still based on a virtuous cycle of loyalty. It begins
with our team. A team that is motivated and engaged will operation.
do everything in its power to help customers. When we help As I said, every business must have a social purpose as well as
our customers by lending them, protecting their savings and a commercial one. We want to be profitable and sustainable.
providing excellent service, they reward us with their loyalty That way we can help more people and businesses prosper. We
and their business. This drives up our profits and boosts the
will continue to work every day to make EBL the best retail and
confidence of our shareholders. And when our business is
commercial Bank for our people, customers, shareholders and
strong, we can invest even more in the communities. It makes
us a responsible Bank. Our goal is to ensure this is a company communities.
where our team is proud and happy to work.
EBL strives to be simple and fair in everything it does. That is
the benchmark we set ourselves every day with our customers,
shareholders and with each other. That culture is our most
important asset. It drives the millions of daily choices we make
to act responsibly. This takes us beyond the traditional notions
of corporate social responsibility towards a more expansive
vision of what a socially responsible business can be. I am Hassan O. Rashid
especially proud of the work we do around our nation with Additional Managing Director &
universities and education. This is a powerful expression of our Chairman, Green Banking Cell
values.
Sustainability: An Overview
EBL’s sustainability ethos is one that is deeply embedded in the reputational risk stemming from any financial transaction with
overall business strategy and therefore intrinsic to the way in a social or environmental impact, which issues non-binding
which the Bank conducts its business. Sustainability is at the recommendations to the relevant decision-making body.
very core of the Bank’s corporate strategy. By integrating social Subsequent to Business Units and Credit Risks as a third line
and environmental responsibility into core business processes of defense, internal audit performs regular evaluations of the
and stakeholder management, the Bank recognizes its ability to implementation of Green Banking sustainability and Green
achieve the ultimate goal of creating both social and corporate Office Guideline.
value. We are committed to serve all strata of society and
through careful customer segmentation that provide financial Policies
access and services across the continuum of socio-demographic EBL ensures ethical, social and environmental criteria that
groups. We always believe that growth should be both inclusive are properly followed when conducting business. It therefore
and environmentally sound to reduce poverty and build avails of several policies, codes and internal rules inspired by
shared prosperity for our society to continue to meet up the the best practices, international conventions and protocols,
needs of future generations. We are working towards building codes of conduct and guides that are applicable in every area.
a solid business model capable of generating stable revenue, Corporate sustainability policies were exhaustively reviewed
delighted customers, disciplined use of capital, rationalization and extensively overhauled in 2016.
of cost, prudent risk management, and strength of brand to Green Banking Policy:
become sustainable corporate house. Being sustainable also
means taking responsible decisions in context of ethical, social This policy defines the Bank’s general green banking principles,
and environmental issues as well as long term welfare of the and its voluntary commitments to its main stakeholders,
community. through principles and commitments focused on creation of
lasting value. This policy also refers to social and environmental
Sustainability Governance risk management for the Bank’s lending activities involving
EBL has updated the governance structure of its sustainability sensitive sectors and business activities, which are described
function to include the international best practices on corporate under the “Sectoral Policies”. These policies lay down the
social responsibility and the good governance. The rules and criteria governing the Bank’s financial activity with the
regulations of the Board of Directors stipulate in relation to defense, energy and soft commodities (products such as palm
sustainability that: oil, soy and timber) sectors. They prohibit financing certain
activities and establish restrictions for others (e.g. transactions
• The Board of Directors; on all matters except those reserved needing special attention in light of their potential social and
for the annual general meeting, is the only body authorized environmental impacts, and subject to certain requirements
to approve general policies and strategies, especially those being met in order to be approved). The review took into
relating to sustainability. account the best international banking practices, as well as the
• The Board of Directors also oversees the corporate social demands of, and issues of interest.
responsibility policy, ensuring its compliance and its aim to Human Resource Policy:
create value for the Bank.
This policy states EBL’s stance on human rights protection for
EBL has a Green Banking Cell chaired by AMD and comprises engaging in business with its stakeholders.
the heads of different divisions and corporate areas of the
Green Office Guideline:
Bank concerned with sustainability. This Committee meets at
least once a quarter and proposes, coordinates and promotes It explains the Bank’s commitment to, and action in, combating
the Bank’s sustainability initiatives. CRM also assesses the climate change.
Performance highlights 2016
Achievements in 2016 Simple l Personal l Fair

59.3% employees have a permanent employment. Simple, Personal and Fair is the essence of the Bank’s corporate culture.
g
18% are women. It embodies how all professionals think and operate, and represents what
our customers expect of us as a Bank. It defines how we go about our
10,505 days of training round the year.
g
business and take decisions, and the way we interact with customers,
g 64 fresh graduates recruited under PO and MTO shareholders and the community.
program.
g 82% accounts facilitated with Mobile/SMS Banking; Simple We offer an accessible service for our customers,
increased by 10.8% over 2015. with simple, easy to understand products. We use
plain language and improve our processes every day.
g 14% accounts facilitated with Internet Banking.
g 178,062 customers getting E-statement.
g 31.94 million donated for the community Personal We treat our customers in a personalized way,
offering them the alternatives that best suit their
needs. We want each and every one of our employees
and customers to feel unique and valued.
5.83% reduction in paper use per employee versus Fair

g We treat our employees and customers fairly and
2015 equally, are transparent and keep our promises. We
establish relations in such a way that the Bank as
g 3.39 kilowatt installed capacity of solar energy to
well as its employees, customers and shareholders
run bank premises and ATMs
obtain benefits. Because we understand that what is
good for them is also good for the Bank.
Key Strategic Issues
Our aim is to be the best retail and commercial Bank that earns the lasting loyalty of our people, customers, shareholders and
communities.
Material Aspects for Sustainability

EBL regularly analyses the social, environmental and ethical - The internal quantitative assessment considers and evaluates
aspects while delivering banking services. This enables the Bank the issues dealt with by the Bank’s green banking cell.
to build a matrix of relevant issues and to assess importance
- Analysis is also carried out to identify the main stakeholders
of the aspects identified. The quantitative analysis includes
and relevant issues throughout the value chain.
external and internal sources:
The qualitative analysis, meanwhile, puts these issues in context
- Of all these, the external quantitative analysis considers
and adds value to the conclusions drawn.
the issues assessed by socially responsible investors, the
sustainability objectives in the sector. Main material concerns identified:
Commitment to Sustainable Development

The UN Sustainable Development Goals, adhered to by more
than 190 countries, identified 17 key global issues. Bangladesh
is one of the signatory of this. EBL is in a process of managing
relationships with stakeholders in the context of the world’s
foremost sustainability challenges and committed towards
these goals and is helping to achieve them through its business
activities and its community investment program.
Collaborates with many social Promotes university education to help

institutions to improve the quality of prosper the communities in which it is
life of people and meet their needs. present.
Promotes an open attitude towards Endeavors to attract and retain the best
diversity, as a basic principle of its talent and wants its professionals to be
actions to ensure non-discrimination. motivated, committed and rewarded.
Promotes financial inclusion within Helps people and businesses prosper in

communities and drives training, order to support the sustainable growth
enterprise and job creation. of communities.
Analyses the social and environmental

Ensures ethical, social and
risks in its transactions and promotes
environmental criteria that are properly
financing for renewable energy and
followed to develop responsible
projects to support the fight against
activities.
climate change.
Environmental Aspect
To achieve long-term sustainable development, we must In-house Environment Management
responsibly manage environmental and social (e & s) risks.
Green office guide provides a great way for staffs to learn more
Environmental risk means the risk of causing pollution or about environmental issues and what can be done at work to
destruction of the natural environment (land, water, air, natural reduce their ecological impact. A green office self-reporting
habitats, animals and plant species) through either accidental assessment system has been developed in this guide to provide
or deliberate actions. In 2013, we introduced certain procedures management with sufficient ways to calculate the effectiveness
and templates to assess our e & s risk. We recognize that our of green office recommendations, and provide incentives
primary impact on the natural environment is through our to staffs so that the process of saving the environment is not
relationship with our customers and the lending decisions we conveyed as a chore.
take. Therefore:
• All our lending proposals are factored against e & s risks
where appropriate.
REDUCE MANAGE
• All lending proposals are taking into account of local Energy Waste
laws and regulations and internationally acceptable Consumption (Reduce, Reuse,
environmental and social standards where these are more Recycle)
stringent.
• The risks associated with both environmental and social
issues are being properly recognized, evaluated and where
appropriate mitigated.
• The Businesses ensure that appropriate procedures are
designed to meet these policy requirements e.g. project
finance proposals are assessed in accordance with the IFC
performance Standard. CONSERVE PROCURE
EBL is committed to minimize the adverse impact of its Water Green
operations on the environment. In 2016, we reduced office
paper use by 6 percent per full-time employee. We remain
broadly on track to meet our respective committed targets.
Online Banking & Green Marketing E-Statement and SMS Banking has been made mandatory for
all new to the bank customers
As a pioneer bank for introducing various technologies in
customer services to minimize carbon emission; we always Online Banking Journey Year 2016
focus on delivering our customers through alternate channels. % of total customers using Internet Banking 14%
Some of our Green Marketing and Products initiatives are: % of total customers using SMS banking 82%
1. Internet Banking and Sky Banking (mobile app) interface for % of total accounts statements delivered 42%
customers through email
Our Customers can sign up instantly to online banking using 3. Implementation of National Payment Switch of Bangladesh
their debit or credit card. Online Banking facility allows the (NPSB)
customer to bank from anywhere, anytime with total security We are connected to National Payment Switch which enables
and confidentiality. This service is absolutely free for customers. our debit/credit card customers to withdraw money from any
Following banking services can be availed through Online other bank’s ATMs within Bangladesh for a fee of only 15 taka.
Banking:
Protecting Environment Year 2016
• Transfer fund from one account to another account within
Number of customers eligible for environmental 92
EBL or to any BEFTN member bank account (daily transfer
due diligence
limit BDT 500K).
Number of customers appraised for 92
• Pay bills for credit cards of any bank operating in Bangladesh, environmental risk rating
mobile phones recharge (both prepaid and postpaid) of Low 84
all operators, internet service providers (Wimax, Qubee, Moderate 6
Banglalion, doze, go broadband, Agni, Access Telecom High 2
and Dekko airnet), Tuition fee of Daffodil International
Cost of water consumed by the Bank (BDT in 4.30 million
University.
Million)
• Request cheque book or account statement. Cost of paper consumed by the Bank (BDT in 3.67 million
• Place instruction for a regular transfer of fund from account Million)
at desired frequency. Cost of energy (electricity, fuel, and gas) 119.59
consumed by the Bank (BDT in Million) million
• Generate account statement (both loan & deposit), Installed capacity of solar energy to run Bank 3.39
view issued check leaves status and submit positive pay premises and ATMs (in Kilowatt)
instruction. Percentage of Bank branches connected online 100%
2. Enrolment to SMS banking and E-Statement mandatory Number of staffs received training on 139
for all new customers Environmental and Social Risk Management
Economic Aspect
Employee Remuneration
EBL has 2,671 employees; 52% are with EBL for less than 5 years, 31% are
BDT 2,821 million in staff costs
for 5 > 10 years, 7.57% are for 10 > 15 years and 9.21% are for over 15 years.
Loans granted (net)

The Bank has also financed a total of BDT 22,750.2 million Small & Medium
BDT 22,750.2 million in loans
businesses. EBL is a market leader when it comes to financing renewable
awarded at year-end
energy projects.
Shareholders
BDT1,757 million in
Distribute 20 % cash dividend and 5% stock dividend.
shareholder return
Taxes withheld and paid

EBL contributes both economically and socially to the countries in which
BDT 2,225.99 million in taxes
it operates by paying all its withholding indirect taxes from third parties.
and other levies withheld and paid
Social investment in the community
BDT 31.94 million in social BDT 31.94 million in community support program.
investmentin the community 14 MFI’s are linked with EBL to mobilize agricultural loan.
Financial Inclusion Year 2016
Cumulative Agricultural and Rural Credit extended through MFIs (BDT in Million) 3,508.94
Cumulative Agricultural Credit extended through own network (BDT in Million) 16.52
Cumulative Agricultural and Rural Credit extended from ADB fund (BDT in Million) 680.00
Total Number of individuals impacted 1,15,079
Total Number of MFIs partnered 14
Promoting Sustainable Finance Year 2016

Amount financed for installation of ETP to plants in operations -
Amount financed in plants having ETP (loan disbursed to projects having ETP) 20,247.0
Amount financed to solar panel/ renewable energy plants -
Amount financed to Bio-fertilizer plants -
Amount financed to brick kilns adopted cleaner technology 21.2
Amount financed to other green projects -
Total Sustainable Finance 20,268.2
Note: All figures above are in Million Bangladesh Taka
Number of employees trained in sustainable finance 6
Financial Assistance Received From Government Year 2016

Borrowing from Bangladesh Bank under different Refinance programs (as of 31 December) (BDT in million) 1,306.65
Interest loss compensation received from Bangladesh Bank against disbursements in specified agricultural products 0.034
@ 4% (BDT in million)
Governance Year 2016

No. of Incidents of non-compliance with regulations resulting in fine or penalty None
Social Impact
Employees and Talent Management
In order to be the best retail and commercial Bank for our customers, we have to begin with our employees. If they feel proud of
belonging to EBL and are more committed, they will be able to earn the lasting loyalty of our customers. EBL endeavors to attract
and retain the best talent, and wants its professionals to be motivated, committed and fairly paid. Its aim is to be one of the top
banks to work for. EBL employees share the corporate culture focusing on fulfillment of its purpose, helping people and businesses
prosper, and consistently doing things in a simple, personal and fair way.
Employer of Choice Year 2016

Headcount (permanent staff) on year-end 1,584
Percentage of female representation 18%
Percentage of voluntary attrition 8%
Number of permanent staff received training 4,683
Total number of training days 10,505
Average training days per employee 4
Percentage growth in headcounts 0.44%
Number of fresh graduates recruited as Management Trainee Officer (MTO) 25
Number of fresh graduates recruited as Probationary Officer 36
Number of fresh graduates recruited in other positions 28
Years of service with EBL as percentage of total permanent staff headcount
Less than 5 years 52%
5 > 10 years 31%
10 > 15 years 7.57%
Over 15 years 9.21%
No. of Fire wardens 255
Knowledge
Support to Small and Medium Enterprises (SMEs)
Training is one of the key tools for professional development
at EBL. In 2016, for boosting employee knowledge, skills and
alignment with the corporate culture total 4,683 training Support to Students
sessions received by permanent employees with an average of 4
training days per employee over the year.
Partnership with community organizations
Health and safety-Main occupational risk prevention
measures:
Socially responsible initiatives
Emergency drills and action plans involving personnel
specifically trained to deal with emergencies.
Customers Finance to renewable energy and energy efficiencies
We want to help our customers’ progress day by day: with

simple and tailor-made solutions that increase their loyalty to Financing low emission, electrical and hybrid
the Bank; a fair and equal treatment based on trust and excellent technologies
service through our branches and digital channels.
Products and services for agriculture
EBL is improving its customer relationship model year after
year with the aim of offering the finest products and services
as and when they need them, while enhancing the customer Service Quality
experience with the bank. Customer’s delight is at the center of EBL’s business model.
The Bank has over 428 thousand customers, who recognize
Excellence in Customer Service Year 2016
the brand as a reliable partner. Understanding their needs,
Number of average customers* 427,902 providing innovative solutions and building long-term
Number of complaints received through all 1,423 relationships based on trust and transparency created
channels foundation of Bank’s business model aiming at generating stable
Complaints per 1000 customers 3.33 revenue. Continuous pursuance for delightful customer service
Usual turnaround time to resolve any compliant 0-3 days is essential for EBL in its business. In recent years, the Bank has
Total number of complaints regarding breaches NIL been surveying customer satisfaction by third parties at service
of customer privacy and losses of customer data delivery points to understand the areas where improvement is
* Simple average of numbers of customers at the beginning and needed. The Bank planned to invest in systems for 360-degree
ending of the year. customer relationship management and automated system for
managing incidents, claims and complaints.
Branches
Employee Training and Consumer Awareness
Alongside the advances in the digital sphere, EBL is also working
to enhance customer experience in the traditional channels. Employee awareness and training on environmental and
social risk and the relevant issues are continuous process as
The branches remain an essential channel for providing
part of the Bank’s employee training program. Awareness
personalized attention and advice to customers. The first
development among consumers and clients are continuous
flagship branch was opened in 2015, offering more streamlined
job of the Bank’s employees across all functions. Green
processes, more intuitive technology and unique spaces that
banking training is mandatory for all newly joined staffs in
combine the benefits of technology and professionalism of our
Bangladesh. For our corporate relationship managers to have
people.
in-depth understanding on Green Finance, we have introduced
Digital Transformation ‘Sustainable Finance Training’ since 2013. In 2016, a total of
The multichannel transformation of the commercial model 139 staffs have attended these trainings which was 39 in 2015.
is a strategic priority for EBL. Digital channels open up new Community Investment
opportunities to personalize customer relations, forge closer
EBL also contributes to economic and social development
ties with them, and contribute to improving their satisfaction
through initiatives and programs that support the community.
with and loyalty to the bank.
At EBL, we believe that the most rewarding investment is
Products and services offering social and/or environmental investing for the society. We are driven by our purpose to
added value sustain and ensure growth by making profit for the stakeholders.
As part of its commercial activity, EBL offers a wide range We believe in creating long-lasting value for our clientele,
of products and services with social and/or environmental shareholders, and employees and above all for the community
added value. Among other things, these products provide we operate in.
accessto financial services for low-income groups, socially As a responsible corporate, we ensure our CSR activities are
responsible investment, and financing of renewable energies anchored on the principle of ‘Building Social Capital’. We
and environment friendly products.
recognize that we have some definite responsibilities to our with the latest international regulations and is able to adapt to
customers, employees, government, environment, and to new techniques used by APG (Asia Pacific Group on Money
the communities at large. A detailed report on CSR has been Laundering). It also has a corporate framework in place for this
presented separately in the annual report. purpose, establishing the basic guiding principles and policies
concerning this matter and the minimum standards that must
Corporate Social Responsibility Year 2016 be adhered to by local units responsible for managing and
Major Expenditure for CSR (BDT in Million) 31.94 coordinating the systems and procedures for the prevention of
Tax Contribution money laundering and financing of terrorism, and investigating
and dealing with any reports of suspicious activities and any
EBL contributes economically and socially to the countries in requests for information from supervisors.
which it operates by paying all direct taxes and withholding
indirect taxes from third parties, collaborating fully with the Tackling Financial Crime Year 2016
local tax authorities. Number of staffs completed training on AML 1,035
Anti-money laundering and counter-terrorist financing Number of Suspicious Transactions reported to 13
Bangladesh Bank
EBL has a system to prevent money laundering and the Number of accounts closed for unsatisfactory -
financing of terrorism. The system is kept constantly in line KYC
Sustainability Plan 2017-2020

EBL formed a Sustainable Finance Committee in compliance with regulatory guidance at the beginning of 2017. The plan entails
deploying of over 200 measures designed to reduce energy consumption in EBL’s new head office buildings, reduce the consumption
of paper, emission of greenhouse gases, and raise awareness of and sensitivity towards environmental issues among the staffs in the
period 2017-2020.
The main projects in the pipeline across the Bank’s operations involve reducing paper use, reducing business trips, procuring green
energy, and many others shown in the chart.
142 Annual Report 2016 Eastern Bank Ltd. CORPORATE SOCIAL RESPONSIBILITY
CORPORATE SOCIAL RESPONSIBILITY

The world is changing at an ever-increasing pace. This change is of its Sustainable Development Goals (SDGs). In emerging
putting pressure on resources, and success in the labor market economies, access to education has the potential to raise those
is also increasingly dependent on knowledge and skills. To at the bottom of the economic pyramid out of poverty. We at
cope up with the ever-transforming landscape of business and EBL focus on tertiary level of education because we believe that
finance, new thinking and new business models are needed to it is where youth are prepared for entering the job market. For
overcome barriers to prosperity. As a corporate citizen, Eastern the economic development our society needs skilled workforce
Bank has been working for a better future since 1992 to support and people who embrace critical thinking. Education is also
the drivers of prosperity for individuals, communities, and crucial to social cohesion too, because it enables people from
economies. a disadvantaged background to earn an income that can
provide a better quality of life and inspire future generations.
We believe that our responsibility extends beyond our core
As a responsive corporate citizen we have anchored our
business to the society in which we operate. For us investing
CSR initiatives on education. Our initiative is based on two
in today is building for tomorrow. Our future is our society.
pillars: strengthening youth confidence by raising aspirations
Therefore, investing in the society in which we operate in is
and providing pathways to education and employment
basically investing in our own future.
opportunities.
Our corporate citizenship strategy To reach out to meritorious and disadvantaged students of
We apply the same strict corporate governance standards to the University of Dhaka, we began a fruitful partnership with
our corporate citizenship programs as we do to our business Dhaka University Alumni Association (DUAA) in 2007. We are
dealings. For us good governance is the cornerstones of our offering a minimum of four scholarships to all 74 departments of
strategy. Our system of corporate governance provides the basis University of Dhaka helping the meritorious but disadvantaged
for the responsible management, transparency of processes and young people to pursue higher education and help them grow
compliance to regulatory bodies with a focus on sustainable as skilled workforce.
value creation. In 2016, we more than doubled the amount to BDT 4.5 million,
All project proposals relating to CSR are evaluated based on a but decided to provide the scholarship to only 150 student to
standardized governance framework and scorecard. We have a have a greater impact on their lives. The actual event took place
Board approved CSR policy framework and we do everything on 26 January, 2017. The scholarship presentation was held
necessary to ensure transparency of our investments. Our CSR at the Senate Bhaban auditorium of the University of Dhaka
policy clearly outlines our engagement strategy. attended by Finance Minister Abul Maal Abdul Muhith as chief
guest and Professor AAMS Arefin Siddique, Vice-Chancellor
• We are and we will exercise utmost care to ensure that the
of University of Dhaka as special guest. Deputy Governor of
CSR allocations do not end up financing militancy and
Bangladesh Bank SK Sur Chowdhury was present as guest
terrorism.
speaker of the program.
• Our CSR engagement program has always special emphasis
on education and healthcare. Our aim is to spend 40% Contribution to National Exchequer
of our fund for awarding scholarship and stipend for Being a responsible and tax abiding corporate citizen, EBL
underprivileged students from renowned educational regularly pays corporate tax on time, sometime even before it
institutions and 25% to healthcare for underprivileged falls due as required and asked by the tax authority. We also
population of the society. deposit excise duty, withheld tax and VAT to govt. exchequer
• We strongly feel that sports and arts and culture are key on time deducted from employees’ salary as well as payments
component for a healthy and sustainable society. We to customers and vendors. Following graph shows our
would like to commit 10% of our CSR allocations to the contribution:
development of sports and arts and culture of the country.
• The remainder 25% of the budgetary CSR expenditure
allocations should be used in areas such as emergency
disaster relief, promoting adoption of environmentally
sustainable output practices and lifestyles, promoting
artistic, cultural, sports and recreational facilities for
the underprivileged, upgrading facilities and lifesavings
equipment in emergency rescue services like the fire
brigades etc., infrastructure improvement for disadvantaged
communities in remote far flung areas.
Education for social development

The UN describes education as key to social and economic
development, and has put educational progress at the center
We are Environment-responsive collateral. EBL not only provides finance but also guides women
clients on various business issues such as financial record
We believe that every small ‘GREEN’ step taken today would
go a long way in building a greener future. As an environment- keeping/accounting, sales routing through bank account, Trade
responsive bank we initiated Go Green campaign in our Bank. License, taxation, marketing, insurance etc. As a part of CSR,
After reducing the use of electricity and paper at the office, EBL we donated 10 computers among Women Entrepreneurs and
is now gearing up for carbon trading to show its commitment 10 ‘Duranta Angellena Ladies Bicycle’ for North Area Poor
to environment-friendly funding. EBL is the first bank to claim School girls in 2016.
refinance from the central bank for carbon credits. Some of our
branches and ATM’s of the bank are now run on solar power. Disaster Management and our commitment
The Bank also ensures that customers having production Our corporate values tell us to stand by the people in need
facilities susceptible to damage environment has due and reaching out to them in crisis. The society we belong to
environmental clearance certificate from the concerned and operate is the place where all our responsibilities lie. We
ministry while granting or renewing credit facilities. EBL is the have always come forward with succor. Our society is our first
first bank in Bangladesh to offer Sustainable Energy Finance preference: be it distributing blankets to cold-hit people of the
loan product with assistance from the South Asia Enterprise country, reaching out relief to flood-affect people, or responding
Development Facility (SEDF), managed by IFC in partnership
to any national emergency. In 2016, we donated relief material
with the UK Department for International Development and
worth over BDT 30 million to Relief & Welfare Fund of Prime
the Norwegian Agency for Development Cooperation to help
companies implement energy-saving measures and boosting Minister Sheikh Hasina.
the competitiveness of private enterprises. We donated BDT 2.5 million to ‘Law & Order Coordination
Empowering women Committee’ for CCTV surveillance Project for Gulshan, Banani
& Baridhara Residential Areas by DMP.
It is now globally accepted that empowering women
facilitates economic growth. We are a great believer of As a good corporate citizen we always feel it is our duty to stand
women empowerment. We have special products for women by the people who are suffering or in difficulties. Every year we
entrepreneurs at special discounted loan pricing to provide give a cheque for 4.8 lac taka to a family of one of the officers
growth support. Women clients can avail EBL Mukti loan up- killed in the BDR carnage. We are committed to provide this
to BDT 25 Lac without any collateral, up-to BDT 50 lac with support for ten years until 2018.
EBL hands over a scholarship dummy cheque for BDT 4.5 million to A K Azad, President of DUAA.
144 Annual Report 2016 Eastern Bank Ltd. CORPORATE SOCIAL RESPONSIBILITY
CSR 2016
EBL Director Meah Mohammed Abdur Rahim hands over blankets to Prime Ormaan Rafay Nizam, Director of EBL hands over a Pay Order for BDT 15.00
Minister Sheikh Hasina for Prime Minister’s Relief and Welfare Fund. MD and (Fifteen) Million as part of CSR initiative of the bank to Prime Minister Sheikh
CEO of the bank Ali Reza Iftekhar was also present. Hasina for the Prime Minister’s Relief and Welfare Fund.
Barrister Tania Amir; Rumi Ariyoshi, First Secretary, Embassy of Japan in Annual Women’s Day celebration.
Bangladesh along with others cut a cake to mark the International Women’s
Day.
EBL donates a total of 10 bi-cycles to the poor and meritorious students of EBL hands over a scholarship dummy cheque for BDT 30,000 to a student of
Gangachara Haji Delowar Hossain Girls High School of Rangpur district. University of Dhaka.
MANAGEMENT DISCUSSION
AND ANALYSIS
The discussion and analysis presented by the

management is a core document to understand
health of the bank. This should be read in
conjunction with the consolidated and separate
financial statements and the related notes to them.
Our discussion highlights include qualitative and
quantitative details of operating income, investment
income, fees, commission and FX income, operating
expenses, operating profit, specific provision on loan,
provision for loss on revaluation of shares, provision
for income tax and PAT.
146 Annual Report 2016 Eastern Bank Ltd. MANAGEMENT DISCUSSION AND ANALYSIS
FINANCIAL REVIEW
Apart from being one of the most regulated sectors, banks
in Bangladesh are affected by a range of factors: regulations,
overall macro-economic condition, monetary policy stance
of central bank, business environment, legal framework etc.
Political as well as macro-economic stability helped the country
in achieving 7% plus GDP growth for the first time in fiscal
year (FY) 2016. Industry played the primary role followed by
the service sector to contribute higher growth. Low petroleum
prices in the global market helped inflation rates to stay low
since Bangladesh spends a significant amount on petroleum
products. Export earnings increased at a higher rate than
imports; in other words export-GDP ratio increased but
import-GDP ratio declined in FY2016. Higher growth in RMG
export also contributed to this.
Net Interest Income
Despite visible signs of growth and improvement in macro
economy, the banking sector continued to display its
weaknesses. Lukewarm private sector credit demand despite
single digit lending rate, rising NPL, falling profitability, stricter
regulations on ALM practices, and certain governance issues
continue to impact overall health of the banking industry.
Government borrowing through savings certificates at a much
higher rate is also crowding out banks’ opportunity to invest
in treasury securities in absence of vibrant credit demand. In 2016, Net interest income increased significantly (56% or
While the banking sector is struggling with many odds, new BDT 1,984 million) mostly due to fall of interest expense by
challenges continue to appear in new forms. Cyber-crime is 18% (interest income grew marginally by 2%)which is explained
one such element that emerged as a new threat for the banks in below:
Bangladesh in 2016.
Interest Income (+2%)
We continued to transform challenges into opportunities and
grew sustainably. We are the first bank in the country to achieve Bank’s interest income, mostly from loans, increased by 2%
a long-term rating Ba3 by Moody’s, one of the top rating (BDT 207 million) mainly for following reasons:
agencies of the world. From the financial point of view, EBL • Although loans and advances increased by 17% to BDT
made the highest profit after tax so far (BDT 2,656 million with 152,084 million at year-end 2016, growth was slower during
20% growth) in 2016. Details are explained below: first half (H1) of 2016 but had a positive turnaround in the
Operating Income (+16%) second half (H2) pulling down average loan balances.
Our core banking results showed a healthy sign of turnaround • FCY loan which is mostly low yielding and occupies 15%
in 2016. Despite negative growth in investment income and of total loan (BDT 22,564 million) saw a significant growth
Commission, exchange and brokerage income (both by 7%), an (27%) during the year.
impressive growth in net interest income or NII (56%) resulted • Weighted average yield on loans decreased to 9.98% in
a double digit operating income growth (+16%). Share of NII in December 2016 as compared to 11.29% in December 2015
total operating income also increased from 36% in 2015 to 48% mainly due to stiff competition.
in 2016. Operating income mix for 2016 and 2015 is compared
below: Interest Expense (-18%)
Bank’s interest expense, mostly on deposits and borrowing,
decreased by 18% (BDT 1,777 million) mainly for following
reasons:
• Although deposit increased by 10% to BDT 140,284 million
at year-end 2016, overall deposit growth was negative
during H1 of 2016 and positive but slower in H2, 2016
pulling down average deposit balances heavily.
• Greater mobilization of low cost deposit (current and
savings deposit increased by 15% to BDT 55,086 million in
2016) and a gradual rate cut by ALCO during H1, 2016. As
a result, weighted average cost of deposit reached 4.87% in
December 2016 which was 6.12% same point previous year.
Investment income Operating expenses
Bank’s investment income is generated from fixed income Total operating expenses increased by 7% or BDT 350 million
securities (mostly govt. treasury bills/bonds), secondary market mainly for the following reasons:
portfolio, subordinated bonds, and investment in subsidiaries.
• Salary and allowances increased by 9% or BDT 241 million
Overall investment income in 2016 saw a decline for following
in 2016 due to regular increment in March 2016 and a
reasons:
biennial market adjustment in July 2016.
• Income from fixed income govt. securities (in the form of
• Overall bank rent, utility bills, insurance premium,
coupon and capital gain) decreased by 12% or BDT 451
printing and stationary, repair, maintenance, office
million mainly due to sale of some high yielding govt.
security, advertisement and business promotion expenses
securities under HFT to avoid revaluation loss under rising
experienced a usual growth during 2016.
yield curve scenario during the first half of 2016.
• However, after the first half yield curve moved downwards Operating profit
as govt. borrowed through sale of national savings certificate
instead of issuing govt. securities and the bank also did not
increase investment in govt. securities as return was much
lower. Coupon income is taxed at prevailing rate (40%) but
capital gain is tax exempted.
• Bank offloaded certain quoted securities and realized a net
loss of BDT 153 million to go for some strategic investments
within the regulatory limit of capital market investment.
However, BDT 141 million was received as dividend from
the subsidiaries in 2016 (BDT 100 million in 2015). Operating profit increased by 23% to BDT 6,418 million in 2016
mainly due to double digit operating income growth (+16%)
and a single digit operating expense growth (+7%). Growth of
Fees, Commission and FX income NII by BDT 1,984 million contributed mostly to this increase.
Specific provision
Fees and commission together with FX income experienced a

negative growth (7% or BDT180 million) in 2016 because of:
• A sharp fall (24% or BDT 211 million) in FX income caused
mainly by stable FX market during first ten months of 2016
and booking some forward sales to corporate customers Specific provision charged during the year against classified
supported by spot deal for which cost has been booked in loans decreased by 6% or BDT 118 million mainly because
2016 but the forward agreement will mature in 2017 and so of increase in recovery of written-off loans (BDT 380 million
will be the revenue. in 2016 vs. BDT 282 million in 2015) which is shown as a
• Fees, commission and charges income witnessed a minimal deduction from specific provision charged.
growth of 2% or BDT 31 million mainly because of low
Also an improvement of asset quality (NPL: 2.69% at year-end
commission income from trade business due to stiff
competition and negative growth of service charges because 2016 vs. 3.27% in 2015) contributed moderately in decreased
of stricter regulations. provisioning requirement.
General provision (+58%) Provision for Income Tax

General provision charged against unclassified loans and off-
balance sheet exposures during the year increased by BDT 141
million mainly due to growth of loans(17%) and off balance
sheet exposures.
Nonetheless, the cumulative balance of general provision is an
eligible component of Tier-II capital of the bank that provides
safeguard against possible future default as well as supports
Tax Provision (net of deferred tax income) increased by 46%
business growth by strengthening the capital base.
to BDT 1,743 million in 2016 mainly due to 29% growth of
Provision for loss on revaluation of shares profit before tax (BDT 983 million) and reduction of principal
amount of write off loans (BDT 1,891 million in 2015 vs. BDT
As per BRPD Circular of BB, investments in quoted and 1,629 million in 2016).
unquoted securities (shares and mutual funds) are revalued at
the year-end market price for quoted shares and net asset value Profit After Tax
for unquoted shares.
Provision for share and mutual fund provision is made on the
overall portfolio (not individual share basis) and for mutual
fund on lower of cost and (higher of market value and 85% of
NAV).
In 2016, provision against revaluation of shares was released
for the amount of BDT 289 million due to sale of quoted
Riding on a 23% growth of operating profit partly offset by
securities and increase in market price. Consequently, our 46% increase of tax provision (BDT 547 million), profit after
year end portfolio (at cost price) of quoted shares and mutual tax (PAT) increased by 20% to BDT 2,656 million in 2016. As
funds reduced to BDT 2,556 million (in 2016) from BDT 2,721 a result, our earnings per share (EPS) increased to BDT 3.78 in
million (in 2015). 2016 from BDT 3.16 in 2015 (restated).
SEGMENT ANALYSIS
Details of Business Segment Profit & Loss Account and Balance Sheet have been presented in Page no. 253-254 of this report.
CORPORATE BANKING
Corporate Banking Functionalities the fact that EBL is well on track to meet rising challenges.
Through continuous innovation, structured solutions and
Corporate Banking business across the banking industry
service excellence - Corporate Banking of EBL has emerged as
experienced a new dimension in 2016: Sizeable public
a pioneer in the industry.
investments, moderate growth in private sector investments,
direct FCY borrowing from foreign sources by local corporates EBL is also a forerunner in Off-Shore Banking business in
at lower rates and of course intense downward pressure on Bangladesh and its Balance Sheet is one of the largest among
interest rates on lending. Balancing all these, EBL Corporate the local commercials banks in Bangladesh. Rise in demand for
Banking has registered a satisfactory growth both in terms of foreign currency loans of the top tier corporate customers has
revenue and quality portfolio. This has been possible mainly helped the balance sheet grow. EBL’s long standing relationship
because of our sound corporate governance, better risk with the multilateral agencies has benefited the clients to get
management, strong control and compliance and superior access to long term foreign currency financing for infrastructure
customer service. Achieving Ba3 rating by Moody’s reiterates development and export oriented industrial growth.
Corporate Banking comprises of 9 relationship units: 6 units are Major Challenges

stationed in Dhaka while the remaining 3 units are located in
Chittagong. In addition, there are 2 (two) specialized product Overall credit growth across the banking industry has been
units (namely Transaction Banking and Structured Finance) moderate while declining interest rates across the industry
to cater clients cash and trade and specific financing needs. continues to create downward pressure on the overall margin.
Transaction Banking has 3 sub-units: Cash Management Unit As such, it has become imperative to identify new sources
(CMU), Trade Sales Unit (TSU) and Financial Institutions (FI) of low cost deposit to support lending to the large corporate
Unit. clients at competitive rates. In absence of long term hedging
instruments, rising LIBOR has become an added concern
Key Strengths
which can adversely affect the OBU business growth. Credit
Corporate Banking provides a one stop solution to the concentration remains a continued challenge, therefore,
financing needs of its valued clients. The team comprises of corporate banking hunt for ‘good borrowers’ will be one of the
highly skilled and experienced Relationship Managers. The key agendas of 2017.
centralized operation allows seamless banking services to its
clients. A wide range of products starting from working capital,
term financing, structured trade finance, cash management
solutions to large syndication capability coupled with service
excellence has placed the corporate banking division as a role
model among the peer group.
Key Financials Cash Management Unit (CMU):

• Signed Agreement with bKash: Under this agreement,
EBL will facilitate its corporate clients to disburse funds to
the customers’ beneficiaries and to collect payments from
its payers through Mobile Financial Services offered by
bKash.
• “EBL Connect” Agreement with Grameen Phone Limited
(GP): With the help of an online payment portal GP can
provide transaction (FT, BEFTN, Payroll request to Cards
and accounts, RTGS) request through online and EBL will
execute the transactions accordingly.
• Launching of new product “EBL Cheque Pro”: EBL has
introduced Cheque Pro product, an automated cheque
writing program, which enables corporate clients to enjoy
the simplicity and comfort of cheque writing at their office
premises.
• Signed Agreement with BTCL: This agreement is for
collection of Telephone Bills. The bills collection operation
will take place at Booths, Branches, Service Centers and
Delivery Channels like Internet Banking, ATM, POS (if
any) and Standing Orders Instruction etc.
• Signed Agreement with DPDC for Online Payment
Collection of Auction Bidders: Under this agreement, EBL
will collect various types of bid amounts i.e. application
fees, security money and quoted auction value related to
Major Initiatives of Corporate Banking in 2016 DPDC’s auction and DPDC will maintain respective data/
information in their internal database.
Structured Finance Unit:
Other Deals
• Raised BDT 1,707 million syndicated long term loan for the
expansion project of Confidence Cement Limited. • EBL has been the 1st bank to obtain approval followed by
draw-down under LTFF facility of Bangladesh Bank for 03
• Arranged BDT 1,250 million deal of syndicated term loan 0f its valued clients: ACI Group, DBL Group and Rising
facility for the 100,000 mp-year MTPA Steel Melting Plant of Group.
Magnum Steel Industries Ltd. equipped with environment
friendly Fume Extraction Plant. • EBL facilitated advisory function for Next Spaces Limited
for construction work of large power projects.
• Arranged Green Project Finance amounting to BDT 401.5
Million for setting up an auto brick manufacturing plant Strategic Outlook in 2017
with tunnel kiln technology for SAS Building Materials
Public sector investments will play a dominant role in 2017 based
Limited.
on the country’s sustainable development goals and attainment
• Arranged USD 40 Million and BDT 2,065 Million syndicated of middle-income status by 2021. As such, EBL Corporate
term loan facility for Meghna Pulp & Paper Mills Limited. Banking business focus will revolve around infrastructure
(power & energy, transport sectors), health & pharmaceuticals,
• Raised financing of BDT 1,500 Million for KSRM Steel
agriculture,development of economic zones and associated
Plant Ltd. and BDT 500 Million for Ifad Autos Ltd. in the
sectors. At the same time, the division will continue to deliver
form of unsecured Commercial Paper.
balanced business growth with high focus on asset quality,
• Arranged BDT 1,000 Million for BSRM Steels Ltd. and deepening existing relationships as well as expanding customer
BDT 500 Million for Max Infrastructure Ltd. in the form of base, selective onboarding in the identified sectors by the bank.
unsecured Commercial Paper. Overall taka liquidity is expected to continue and margins will
• Debt re-structuring to the tune of BDT 645 Million for HG be thin; as such the corporate banking will continue its pursuit
Aviation Ltd. under syndication arrangement. to source low cost deposit.
CORPORATE BANKING EVENT HIGHLIGHTS 2016
EBL signs a participating agreement for long-term financing at central bank Thank you dinner hosted by EBL Finance (HK) Limited.
head office. The Financial Sector Support Projects (FSSP) is funded by World
Bank.
H1-2016 Business Review meeting. Corporate clients enjoying Borsho Boron 1423 musical evening.
Corporate Soccer Team-2016. Team EBL at Corporate Conference.

TREASURY
Forces that shape asset liability management (ALM) scenario
in 2016 were: monetary policy stance by the central bank in
sustaining declining trends of interest rates, relatively steady
growth of domestic credit but not adequate to mop up excess
liquidity piled up from slower credit growth in last few years,
lack of government borrowing from banking sector due to
soaring sales of national saving schemes, option to foreign
borrowing by local corporates at low interest rate. To sail
through these forces, the ALM focus of the bank was to diversify
asset portfolio, remain active in the foreign exchange market as
well as trading in fixed income securities to bag better return
for our shareholders in 2016.
FX Market:
Market FX market was also highly liquid in 2016 but USD/BDT
pair started going up from November and persisted up to
Dynamics December. Central Bank intervened in the FX market to keep
export competitiveness as china and India, two major export
competitors devalued their currencies. Remittance flows
Money Market: slowed in formal market as rates in informal market was higher.
To encourage routing of remittance through formal channel,
Money market remained highly liquid all through the 2016.
central bank was in favor of pushing rates up in the formal
Central bank kept the reverse repo window closed leading all
market. Corporate houses intended to hedge their future
scheduled banks to park their surplus liquidity in Bangladesh
payments which pushed demand further. All turned USD/BDT
Bank bills of 7-day, 14-day and 30-day tenors whose returns
rates up.
hovered around 3.00%. Most market participants were in
lending side keeping average call money rates below 4.00%
throughout the year while most deals were settled around
3.00%.
Treasury Business
Fixed Income Securities Market: Highlights
The year 2016 started with an optimism that the credit growth
would pick up as the private sector investors started gaining
confidence. Implementation of seven mega projects including We reshaped our business strategy in 2016 in line with new
Padma Bridge and Metro Rail fuelled the hope that government ALM policy to better exploit prevailing market conditions
would borrow sizeable amount from banking sector and thereby predominantly characterized by stagnancy and high liquidity in
excess liquidity would be moped up through large issuances of the market. Lack of investment opportunities led to continuous
government securities which would ultimately lead to upward fall in yields of government securities. Riding over the yield
movement in yield curve. Hence, Market participants started to curve coupled with continuous trading in secondary market
offload their holdings to avoid further revaluation loss in their yielded a substantial capital gain for the bank. Foreseeing the
HFT portfolio since it was projected that there would be upward fall of yields into a risky level, we focused on shifting asset class
movement in yield curve. But, After July 2016, sales in national reducing excessive concentration in government securities
saving certificates were soaring resulted in less borrowing from in later part of the year to minimise any possible price risk.
banking sector in the form of issuance of Treasury securities. Moreover, we grabbed the opportunity to strike certain forward
And, Yield curve started falling again but the market was contracts with our corporate customers which also contributed
watchful in new investment. Market liquidity in secondary a sizeable amount of income in 2016.
trading was low. Most banks invested for maintaining SLR.
Key Financial Highlights

Indicators 2016 2015 GROWTH
FX products sold to corporate customers USD 568.52 million USD 431.15 million ↑31.86%
Total Exchange gain BDT 624.88 million BDT 850.63 million ↓26.53%
Gain from govt. securities (Net off trading and revaluation loss) BDT 812.61 Million BDT 577.85 million ↑40.62%
EBL Treasury
Functionalities
Money Market Desk ALM desk guides ALCO in changing lending and deposit rates
with proper analytics and better forecasts. In 2016, effective
This desk mainly deals with products like call money, term
and timely change in rates by ALCO played a crucial role in the
money, repo, reverse repo, BB bill, FX Swap and commercial
paper. significant growth of NII. A new ALM policy was formulated
by ALM desk keeping BASEL III liquidity ratios(LCR &
Fixed Income Investment Desk NSFR) in mind and central bank’s ALM guidelines into active
EBL fixed income desk deals with products like Treasury bill, consideration. Change in deposit mix reducing dependency on
Treasury bond and subordinated bond. This desk officials term deposit reduced substantial costs for the bank.
makes interest rate forecast and take position on government
securities and subordinated bond. Active participation in FTP Desk
secondary market trading of government securities generated EBL is opening up a new chapter of measuring and reporting
capital gain of BDT 812.61 million in 2016. business performance through internal mechanism known as
Foreign Exchange Desk fund transfer pricing (FTP). FTP will provide useful business
insights, increase efficiency of sourcing and using of funds and
FX sales desk continuously makes forecast about movement help identify the key drivers of profitability. It will also depict the
of future exchange rate and maintains its open position
true performance of business units, branch and product levels
accordingly (USD 35.83 million up to July and USD 53.64
and assist in controlling costs and efficient product pricing.
million thereafter). This desk minimizes foreign exchange risk-
potential due to change in market prices through proper market Corporate Sales Desk
forecasting. It engages into basic foreign exchange activities
related to imports, exports and remittances which generated EBL Treasury has a dedicated corporate sales desk that assists
income for the bank amounting to BDT 624.88 million in 2016. clients in managing their risk exposure as to minimize the
impact of market volatility on the companies. This desk has
ALM Desk played pivotal role in 2016 especially forward market and
Change in interest rate, exchange rate and market liquidity contributed significantly to the bottom line of the bank.
may expose the bank to risks and may threaten the survival
of the bank as well if not managed effectively. The ALM
function comprises management of liquidity, maturity profiles
of assets and liabilities, interest rate risks and forex risk. ALM
desk officials prepare ALCO paper incorporating local and
international economic update, market liquidity forecasts,
interest rate projections, balance sheet analysis and recommend
measures to be taken to optimize balance sheet whether to
reduce or increase deposit and lending rates.
CONSUMER BANKING
Consumer Banking Overview importantly to bring down cost of deposits as well as to increase
yield on assets.
Despite relative stagnation in the non-retail market, consumer
or retail market has been upbeat during 2016. Most of the Liquidity overflow has been the talk of the industry with
banks, historically focused on corporate or commercial clients, interest rates on bank deposit falling consistently throughout
have started realizing the boon of Consumer Banking and the year. In a market marred by high Non Performing Loans
are trying to enter the retail banking space to draw a balance (NPL) ratio and declining health of Banks’ consumer loan
between their institutional and retail deposits, loans and more portfolio, increasing the overall credit portfolio has been quite
challenging.
Consumer Banking Functionalities
As EBL steps into its 25th year of excellence, Consumer Banking EBL continued its pursuit of customer delight by providing top
(CNB) has also come a long way. Apart from helping customers class banking services and full operational support to various
achieve their aspirational lifestyle goals, EBL CNB continued business initiatives.
to focus on the minute details of every product and service
we offer to our customers so that they can conduct their EBL CNB Primary Goals
financial transactions with utmost security and convenience. EBL CNB primarily focuses on achieving three goals:
Our retail banking stands tall in the market for its consistency
in innovation and value creation; and we received our due 1. Attaining and exceeding business target.
recognition with the fourth consecutive Asian Banker awards 2. Providing top notch service to our customers.
for “Best Retail Bank” in Bangladesh. Award such as this,
assure our customers that we provide them with the best mix of 3. Resolving all operational and regulatory issues.
service and products around. Currently, EBL CNB sports a total Key strengths:
of 82 branches, total 13 Priority centers and around 5 lac happy
customers all over Bangladesh. • Disposition to look outwards at the international financial
marketplace to adopt the best products and processes to
In a year of slow business growth in banking sector of streamline the banking experience for our customers.
Bangladesh as a whole, EBL CNB has done a commendable job
of sensing and responding to changing needs and priorities of • Emphasis on ensuring uniform service quality across all
our customers. EBL CNB has stuck to its motto to: channels of communication.
• Improve customers’ experience with every interaction and • Workforce separated into narrow specialized fields, allowing
use it to build improved customer loyalty, increased revenue customers to get service from experienced employee in
and enhanced profitability. their respective fields.
• Enhance the customer value proposition through • Focus on analysis of present customer data and customer
technology-led innovation. feedback to help build new processes and products.
Opportunities: • EBL CNB has already taken steps that provide customers
access through various digital platforms such as
• Lower interest rate in the overall banking industry. This will SKYBANKING, Internet Banking, SMS Banking, ATMs
help existing customers of others banks to switch to a bank & CDMs and Contact Center as well as help merchants
where their individuality and needs for greater customer by facilitating e-commerce transactions through the EBL
service will be ensured. SKYPAY gateway.
• Government’s favorable view on Housing Finance presents
opportunities to the banking industry to help more
Key Financials
customers realize their dreams of owning their first or
bigger houses.
• Increasing popularity of digitalization has already led to
most customers preferring tech-savvy banks that offer
efficient, secure digital services.
Major Challenges and Business Risks

• Increase in fraud and dishonest practices especially in
relatively new field of Digital Banking.
• Increase in NPL ratio has been a trend across the banking
industry.
• Bringing the unbanked population, like women, children
and other special customer bases under the banking
umbrella.
EBL’s Approach:
g Facing Challenges and Risks
• EBL will continuously remain up to date with the latest
security apparatus for all its platforms through which it’s
interacting with the customers. Also in case of unavoidable
fraud, serving the distressed customers in the most efficient
way possible, to restore their trust back into the bank, CNB performance highlights in 2016
so that they know EBL will not let them suffer the harsh
consequences of cyber fraud. • Award and Recognition: EBL has won the Best Retail
Bank award in Bangladesh for the fourth time by the Asian
• EBL CNB will strive to keep NPL ratio low by collecting Banker.
all the necessary documents and conducting proper due
diligence before handing out any sort of credit facility with • Launch of MasterCard Debit, Credit & Pre-paid Card:
proper monitoring and understanding of a customers’ Commercial issuance of EBL MasterCard in Debit,
needs and financial status. Credit and Pre-paid categories has been started in 2016.
MasterCard Worldwide is a leading global payments
• EBL CNB is working with financial inclusion initiative by solutions company that provides a family of well-known,
creating women’s and student banking cells with revamped widely-accepted payment card brands serving consumers,
product offerings that would help bring in most of our financial institutions, and businesses in over 210 countries
country’s youth and women into the banking industry. and territories.
g Leveraging opportunities • Launch of Diners Club Credit Card: EBL has started the
• EBL CNB has divided its target market into meaningful commercial issuance of Diners Club Credit Card in May,
segments such as Priority, NRB, 50+, Students, Women, 2016. Diners Club is the first multipurpose charge card of
Payroll customers etc. to provide specialized products the world. EBL is the sole issuer and POS acquirer of Diners
and services for each segment. This will make customers Club International Cards in Bangladesh and has already
understand that EBL is valuing them as individuals and not issued 25,000 cards to the customers.
just a generic customer.
• Launch of First Co-Brand Airline Credit Card of
• EBL CNB has already launched ‘Home Finance’ campaign Bangladesh (EBL JET Airways Co-Brand Credit Card):
with a favorable outlook, to disburse more home loans to EBL jointly with India’s largest private international airline
customers to realize their dreams of building their first Jet Airways introduced Jet Airways EBL Platinum Credit
homes. The rate is competitive, documentation is minimal Card – the first airline cobrand credit card of Bangladesh.
and processing time is the best in the industry. Jet Airways offers JPMiles – the Airmiles for its Jet Privilege
Club members on credit card transactions. This card is leading Telecom Operator and Insurance Company are
bundled with a host of exclusive benefits. being served everyday with high standard international
level services with Zero complaint.
• Efficient Deposit Portfolio: EBL revamped its CASA
(current and Savings account) product basket in 2013 by • SKYBANKING & Internet Banking: SKYBANKING, the
launching over half a dozen new CASA products. It has paid only comprehensive mobile banking app in the country
good return;as by the end of 2016 we can see a CASA: TD was launched at the end of 2015 to facilitate customers by
ratio of 45:55, one of the best in world standards. For the providing them with the convenience and speed to conduct
third consecutive year, EBL Consumer CASA growth has banking transactions. In 2016 a significant number of users
been higher than its Fixed Deposit growth which helped to were brought under the umbrella of this service. Moreover,
keep our interest expense way below budget. in 2017 EBL wants to focus mainly on QR code payment
• A Booming Asset Portfolio: CNB Asset also continued and digital wallet features bundled with this app to enable
its herculean form from 2015- when it disbursed over 300 the customers with easy and hassle free payment services.
Crore CNB loan in the last quarter of 2015-a feat never seen • ATM & CDM Services: 2016 was very challenging for
before- by disbursing over 1,000 crore CNB loan in 2016. ATM and CDM Services team due to skimming incidents
• Want2buy: EBL has introduced another new EMI Program at ATM booths of different banks. However, the situation
“Want2Buy” in the product basket beside EBL ZIP &HiPO. was handled by ensuring enhanced protection through
Want2Buy is a special feature of EBL credit card that allows Advanced Level Anti-skimming device, migration to chip
a cardholder to convert any purchase of BDT 5,000 or based card, initiation of Centralized monitoring system on
more made using EBL credit card into easy installments. A ATM transactions, etc.
Cardholder has options of choosing from payment tenures
starting from 3-12 months. Strategic Outlook of CNB in 2017
• Revamping Student Banking: We have setup our fourth • Broadening the Horizon of Consumer Asset: CNB will
student banking center, after Banani, Dhanmondi and focus on selling of SME small loans by using the network
Principal branch. With these and other concerted efforts, of 82 branches, 13 priority centers and other consumer
we have grown out student file (a must for students channels.
travelling abroad for higher studies) by almost 100% and • Making an Efficient Deposit Portfolio: After putting
also increased our student banking accounts by more than continuous efforts to improve our CASA: TD ratio over the
10 times compared to last year. last 4 years, it has finally increased ratio to 45% CASA in
• Strong Payroll Banking: The Payroll Banking Unit has 2016 from 28%. We hope to improve it further and make it
been one of the fastest growing CNB Units with over 42,000 50:50 (CASA: TD) by 2017.
salary accounts and 1000+ companies. In 2016 quite a few • Customer Segmentation: We will focus specifically on
BIG MNCs and Local Enterprises such as Berger Paint, ACI, Women and Student banking customers with products
Therap BD, Ananta Group., BanglaCat, Synergies Sourcing,
specifically designed for these customer base, ranging from
Azim Group, Reliance Insurance, Paragon Group, Aga
Debit Card, Account and Loan Products by dedicated team
Khan School, Westin Hotel, Green Delta Insurance, Fortis
in multiple branches.
Hospital (AFC) and many more were taken on board, where
they can pay their employees through the versatile solution • Go Digital: We are planning to create further awareness
“Web Portal” whereby customers can make paperless among cardholders under digital platform for secured
transaction from anywhere 24X7. online transaction through EBL SKYPAY. On the customers’
part, this will drastically reduce their hassle for carrying out
• Customer Proposition: Customer Proposition works
to make the EBL Brand name more visible, rewarding paper notes, and moreover, will add them in the financial
and trustworthy among the customer base. In 2016, the super highway; making any transaction, whether purchase,
portfolio has grown tremendously with multiple customer bill payment or recharge hassle free from the comfort of
events, 145 discount alliances and 206 ZIP partners that their homes.
ensured distinctive branding and visibility making a direct • Diversified Card Products to Cater to Different Segments
impact on the customer satisfaction. Sky lounge is another of the Market: In 2017, our primary goal in Card will be
unique aspiration led by customer proposition at Hazrat to promote Diners Club, MasterCard and Jet Airways
Shahjalal International Airport. Apart from the premium cards among our existing and new customer base, increase
EBL Card Holders, business class passengers from 11 major transaction and in turn grow our revenue as well as asset
International Airlines along with premium customers from portfolio facilitating ourvalued customers.
CONSUMER BANKING EVENT HIGHLIGHTS 2016
EBL signs zero percent installment plan (ZIP) with Surecell Medical. Launching ceremony of NOVOAIR-EBL co-branded prepaid card.
Launching ceremony of a completed range of Mastercard debit and credit cards. Robi customers can now avail easyload service from ATM booths of EBL.
EBL CNB asset team celebrates the landmark of 1000 crore consumer loan Launching ceremony of Jet Airways-EBL Platinum Credit Cards, country’s first
disbursement in 2016, the highest in the history of EBL. ever airline co-branded credit card.
Launching ceremony of EBL Commercial Payment Solutions powered by The Priority Banking team of EBL at 2016 Priority Night.
MasterCard.
SME BANKING
SME business has been playing an important role in developing on changing liability portfolio mix to lower the cost of deposits
overall economy by accelerating industrialization, employment and extending quality loans for optimum returns.
generation and reducing poverty with decent contribution
EBL SME Banking-
in GDP growth of Bangladesh. Eyeing the growth potential,
most of the commercial banks are focusing on growing and g Provides SMEs with ease of access to finance.
sustaining SME business by financing and fulfilling the varied g Delivers products that ensure superior returns to our
needs of SMEs.
customers.
SME Banking Functionalities g Orients customers with industry trends, compliance and
EBL has a well-structured SME platform spread across the regulatory requirements for unhindered growth of clientele.
country to fulfill varying business and financing needs of g Values building strong bondage for mutually beneficial
this thrust sector. It serves a growing base of SME clientele relationships.
through 50+ SME centers with special emphasis to women
entrepreneurs, farmers, traders and especially to manufacturing A brief structure of SME Banking is given below:
concerns. Moreover, EBL SME banking has an ongoing focus
Key Strengths & Opportunities This will ultimately support industrial growth and employment
generation. Our wide range of products and service offerings to
EBL gives more priority on business health rather than collateral small businesses help turning small business to medium ones
offered by customers. Clients’ capacity to repay from the cash and even to large.
generated from own source, entrepreneurial acumen and
growth potential of the business get the priority while granting SME Banking Challenges
finance. Dedicated knowledge based SME team helps SME
Competition from other banks:
clients understand their business by way of open discussion
wherein formal accounting/financials records are absent. The • Growing number of banks having more branches are now
key strengths of SME Banking are: providing SME loans around the country.
• Dedicated and well trained team to reach out root level • Aggressive offers made by some competing banks are
SME clients and provide best service. to book fresh loans as well as to take over loans at lower
interest rates.
• Cash flow based lending - loan without collateral.
• Some competing banks are also using alternative channels
• Financing to manufacturing concern as a priority sector.
such as mobile banking to get deposits at lower cost.
• Strong Women Cell to finance and support growth of
women entrepreneurs. Uncompromising stance for compliance: Striking a fine
balance between compliance and client convenience has always
• Agriculture and cluster financing.
been a daunting task. Sometimes the policy of maintaining
• Advisory support for clients. uncompromising stance for compliance of the bank might
Our aim is to improve SMEs’ access to finance and find cause delay in lending decisions.
innovative solutions to help unlock potentials of SMEs. EBL Business risk: SME loans has high risk of default as owners
has a strong corporate customer base and therefore we have typically have less capacity to absorb any shock or business loss
the opportunity to finance their backward linkage companies. which might increase the chance of non-performing loans for
the financier. However, EBL approves loan very prudently with Business highlights in 2016
the help of its strong and dedicated team aiming to maintain
• Introduction of a new loan product named “Uddipon” to
portfolio health in good shape.
cater financing need for SME clients.
EBL’s approach to face challenges and grab • Disbursement of BDT 1,350 million loans by SME (small
opportunities business) in a single month (December 2016) and a total of
BDT 8,570 million in 2016 crossing all previous scores.
EBL SME follows a holistic approach combining ‘access to
finance’ and ‘advisory to clients’ to increase the contribution • Launched “Winter Buzz”, a current deposit campaign to
that SMEs can make to the economy. Timely finance and increase CASA base.
adoption of suitable technology is vital for the SME sector to • Introduced a Liability Product “EBL ALO” to mobilize
grow and sustain. EBL SME Banking puts efforts to- deposits from institutional high value customers.
• Maintain low turnaround time (TAT) for making decisions; • Increased number of team members of Tele Sales Business
credit or otherwise. unit to transform low transactional accounts to high value
transactions.
• Provide advisory support for clients.
• Better engaged with proprietorship businesses through SMS
• Arrange trainings for SME Relationship Managers (RMs) to alert services along with internet-banking facilities through
increase capabilities. smart phone.
• Detect potential downgrade of customer business health • Introduced liability attrition management team to
early through continuous monitoring and in order to take constantly review customer feedback and provide banking
appropriate measures. solutions to high value medium segment customers.
• Get the most benefits out of strategic locations of all the • Celebrated Women Day at Hotel Sonargaon on March 08,
branches. 2016.
• Distributed computer among women entrepreneurs to
• Meet peer banks competition through continual review of
support technology based record keeping.
policy and products.
• Control attrition of experienced human resources through Strategic Outlook 2017
reward and recognition for performers. • To offer premium value propositions to valued depositors to
meet up potential demand of SME clientele.
Key Financials
• Re-engineering SME structure to reach out a wider area of
SME businesses by using existing branch network.
• Execution of Credit scoring Card of IFC for assessing small
loans.
• Training and knowledge sharing with branch people to
facilitate more acquisition of small business.
• Putting more focus on manufacturing concern rather
than trading concern in order to drive businesses with
sustainability.
• Product bundling and tie-ups with SMEs for optimum mix
in different portfolio of accounts to reduce cost.
• Emphasizing more on booking large ticket customers to
boost the growth of loans.
SME BANKING EVENT HIGHLIGHTS 2016
“Meet the Women Leaders” program organized by SME Banking of EBL to “Computer Handover Ceremony” for women entrepreneurs organized by
celebrate the International Women’s Day. Women Entrepreneur Cell of EBL held at EBL Nest.
Member of the SME team performing a difficult tree top stunt at the Base SME team is keenly listening to the instructor, who is explaining the safety
Camp. rules and regulations of the game.
REVIEW OF EBL SUBSIDIARIES

BRIEF REVIEW OF EBL SECURITIES LIMITED
EBL Securities Limited (EBLSL) is one of the top ten leading stock brokerage houses in the premier bourse of the country with the
commitment to become a preferred brokerage house in Bangladesh. The company management along with its proficient employees
work diligently to provide comprehensive services to valued clients.
Company values include but not limited to the follows:
Products and Services

EBLSL provides brokerage and depository participant services
to its clients. It also offers margin loan facility at affordable
interest rate and specialized value added services including
research services, panel brokerage services, electronic and SMS
based services, dedicated relationship management etc. to meet
up the requirements of retail and institutional investors.
Capital Market Overview

The year 2016 can be termed as a decent year for the capital
market of Bangladesh because it ended with hope and aspiration
among investors. A consistent rally, particularly in the last two
months of the year, enabled the key index of the premier bourse
i.e. DSEX to stay above the 5,000 points level. Average market
yield was 8.8% on year to year basis. Investors’ participation
mainly increased in November and December of 2016. Average
daily turnover in 2016 surged by 17% to BDT 4,944.3 million
from BDT 4,227.0 million in the year 2015. However, during
the last 2 months i.e. in November and December, average daily
turnover was BDT 7,854 million and the market recorded its
highest turnover of the year BDT 21,528 million on a single
session on 27th December, 2016.
Market capitalization stood at BDT 3,190,970 million in 2016.
During the year, 11 new securities were listed on the DSE,
which raised about BDT 11,120 million. All these resemble
that investors regained their confidence on the capital market
and increased their exposure by injecting fresh funds. Thus,
the market resembles optimism and active participation by
investors which is expected to continue in 2017 as well.
EBLSL performance in 2016 Branch Opening
EBLSL is devoted to retain its position within top 10 stock
brokerage houses based on turnover. Below graph depicts last
six months’ DSE ranking based on monthly turnover:
Ali Reza Iftekhar, Managing Director & CEO of EBL and Director of EBL
Securities Ltd. inaugurated a branch at Dhanmondi on October 30, 2016.
Ahmed Jamal, Director, Md. Sayadur Rahman, Managing Director, EBL
Securities Ltd. and Hassan O. Rashid, Additional Managing Director, EBL were
present among others.
Strategic Outlook
In the year 2017, EBLSL will concentrate more on facilitating
Likewise the market, EBLSL also passed a good year in 2016 clients to assist more in making informed decision. The company
in terms of profitability and image building. Net Brokerage will also keep pace with this decent spree with an intend to
commission increased by 39.17% and investment income enhance current market share in both DSE and CSE, open more
increased by 38.52% in 2016 compared to the previous year. Net BO accounts, approach to new Banks, Insurance and Leasing
profit after tax increased by 5.30% in 2016 compared to that of Companies for investing in Capital Market and sign agreement
2015. Company declared BDT 90.00 million as dividend during with different merchant banks for enhancing trade.
the year 2016.
BRIEF REVIEW OF EBL INVESTMENTS LIMITED

EBL Investments Limited (EBLIL), a full-fledged merchant bank has been rendering merchant banking services since July 2013.
EBLIL has already been engaged in dealing with several capital raising issues of reputed organizations in the banking, footwear,
aviation, telecommunication, textile, IT, poultry feed sectors through non-existing shareholders as well as through Initial Public
Offerings (IPO)- in both fixed pricing and book–building method. We also render trustee roles of different bonds. EBLIL values
ethical business conduct, long-term relationship, service excellence and corporate culture which give edge over competitors. The
company has the mission to become the market leader in the merchant banking arena through providing specialized services with
a highly experienced professional team.
PRODUCTS AND SERVICES

Issue Management Debt Capital Management
 Initial Public Offering (IPO)  Debt Issue through Private Placement
 Repeat Public Offering (RPO)  Trustee service
 Rights Issue Offering
 Underwriting (IPO, RPO, Right issues) Portfolio Management
 Issue of Capital  IPO Application Processing on behalf of Clients
 Registrar to the Issue  Investors Discretionary Account (IDA)
 Portfolio Managers Discretionary Account (PDA)
Corporate Advisory  Placement Sale
 Mergers and Acquisitions  Research Report
 Structured Solutions
 Debt Restructuring
 Corporate Finance
 Structural Asset Finance
 Loan Syndications
 Business Feasibility
Financial Review
In line with the market, EBLIL also passed a good year in 2016 in terms of profitability and increasing brand value. A summary of
key financial performances is as follows:
• Fees and commission income increased by 36.31% in 2016 compared to last year.
• Income from Investment increased by 82.38% compared to 2015.
• Profit before tax increased by 61.10% compared to last year.
• Profit after tax (PAT) increased by BDT 18.48 million or 99.34% in 2016 compared to 2015.
Finally, the company declared dividend of BDT 20 million during the year 2016.
Priorities in 2017
Primary Market Operations Secondary Market Operations
Corporate advisory services Discretionary & non-discretionary portfolio management service
Strengthening IPO floatation service Equity investment
Strengthening debt Issue service through private placement Launch product based Discretionary Investors Account
Trusteeship management service
Corporate advisory service, merger & acquisitions, etc.
BRIEF REVIEW OF EBL FINANCE (HK) LIMITED

EBL Finance (HK) Ltd, a fully owned subsidiary of EBL, started With a Net Asset growth of 76% and Profit (after tax) growth
its commercial operations in March 2013, with a vision to of 31%, the company has proved its potential already, now
expand its wings outside Bangladesh. The main objective is to the challenges are to maintain a sustainable growth and look
grasp a fair share of ever-growing trade business in potentially forward to establishing it as an authorized institution in future.
enormous Hong Kong market through advising of Letter of
Credits, handling documentary collections and Bill Financing
Business Highlights
against letters of credit issued by EBL and other local commercial
banks in Bangladesh. However, for a newly formed subsidiary
specialized in Trade Finance, there could not be a better place
than Hong Kong, a territory with a population of just over 7
million and area of about a thousand km with a GDP of over
USD 300 billion, a former British colony now under Chinese
administration is famous as an established economic hub.
The Banking arena in Hong Kong is quite specialized and there
exists a three-tier system of deposit-taking institutions, namely
licensed banks currently 156, restricted licensed banks 22 and
17 deposit-taking companies. They are collectively known as
authorized institutions. There are also 55 representative offices
of different Banks. Moreover, Hong Kong has one of the highest
concentrations of banking institutions in the world. Seventy of the
largest 100 banks in the world have an operation in Hong Kong.
In such a vast financial market, it is always challenging to operate
in a small niche market segment and come out successfully
with profit. EBL has taken up the challenges, and with the right
strategies and efforts, EBL Finance (HK) Limited has done it
successfully by penetrating into Hong Kong and China Market
with an objective to capture Bangladesh linked business. Major
products include advising letters of credit, handling export
documents and financing exports. Past three years of journey
has brought a good amount of profit for EBL and made it
possible to provide higher dividends for shareholders.
Key Financials
HKD million
Particulars 2016 2015 % of Change
Net Assets 7.86 4.46 76%
Revenue 18.77 14.25 32%
Gross Profit 11.35 9.09 25%
Profit After Tax 6.45 4.90 31%
Priorities in 2017
BRIEF REVIEW OF EBL ASSET MANAGEMENT LIMITED

EBL Asset Management Limited (EBLAML) was formed as a private limited company to provide asset management i.e. mutual fund
management services to valued clients. It has got permission from Bangladesh Bank and documentation process is going on to be
registered as an asset management company. EBL subscribed BDT 50 million as capital for doing its business. The company intends to
grab potential business opportunity in managing the assets of various trusts or funds; floating, administering, and managing mutual
funds; and acting as an executor, trustee and custodian. The company expects to commence business upon getting required regulatory
approval tentatively within 2017.
CAPITAL PLANNING AND MANAGEMENT

Strategic and Capital Plan Internal Capital Adequacy Assessment Process
Bank’s capital plan draws key inputs from the periodic (ICAAP):
strategic business plans. The strategic plan aims to create a
The internal Capital Adequacy Assessment Process (ICAAP)
holistic perspective on business outlook, funding need, capital
requires banks to identify and assess risks, maintain sufficient
requirement as cushion and risk-return considerations. The
long term strategic targets are translated into measurable short capital to face these risks and apply appropriate risk-
to medium term financial goals for measuring and monitoring management techniques to maintain adequate capital on an
performance. ongoing and forward looking basis, i.e., internal capital supply
to exceed internal capital demand.
The strategic planning process combines both the approaches:
top-down target setting and bottom-up substantiation. In EBL maintains compliance with the lCAAP as required
the first phase, bank-wide key targets (asset growth, funding under Pillar 2 of Basel III through a robust risk management
sources, profitability, liquidity, and solvency) are set by and governance framework, methodologies, processes and
the Board of Directors. In the second phase, the top-down infrastructure. The key instruments that help EBL to maintain
objectives are substantiated bottom-up through careful review
adequate capital on an ongoing and forward looking basis are:
of business and economic outlook leading to detailed business
plans, which consist of month by month functional targets. • A strategic planning process which aligns risk strategy and
The resulting strategic plan is finally presented to the Board for appetite with commercial objectives;
discussion and approval.
• A continuous monitoring process against approved risk,
The Strategic and Capital Planning process allows EBL to: leverage and capital targets set;
• Set key risks, earnings and capital adequacy targets
• Regular risk, leverage and capital reporting to management;
considering strategic focus and business plans of the bank;
and
• Assess risk-bearing capacity with regard to internal and
external requirements (regulatory capital); and • Stress testing framework which also includes specific stress
tests to underpin the recovery monitoring processes.
• Apply an appropriate stress test to assess the impact on
capital demand and supply and liquidity. Capital Contingency Plan
All financial targets are monitored on an ongoing basis by Safeguarding the capital levels of all entities across EBL is of
respective committees (MANCOM, BRMC, SRP Team) paramount importance. The Capital Contingency Plan is to
and Board/Board Committees. Any shortfall from targets
ensure robust monitoring of capital position and provides a
is discussed together with potential mitigating strategies
framework for effective governance and escalation process
seeking to ensure that EBL remains on track to achieve targets.
Amendments to the strategic and capital plan must be approved in the event of a capital crisis. The Capital Contingency Plan
by the Board of Directors. Achieving targets ensures that EBL also formalizes the basis, strategies and action plans to restore
also comply with the Supervisory Review and Evaluation capital back to healthy level in the fastest possible time without
Process requirements as articulated by Bangladesh Bank. affecting business plans, assets growth and strategic agenda.
CENTRALIZATION FOR OPERATIONAL EFFICIENCY

Centralization of banking operations is a phenomenon, (lending or otherwise), risk management and control functions
where product processing is moved from various points to are retained centrally. It helps implement uniform set of
one or specific number of points under supervision of entities policies, apply best practice and procedures and enforce control
independent of business functionalities. The decision making functions across the bank to carry out day to day operations.
Benefits of Centralized Operations
Performance Highlights in 2016 software to identify suspicious transactions and parties.

• Implementation of Document Management Software • Maintained ISO 9001:2008 standards to ensure set quality
(DMS) to provide standardized service faster to customers of process and service.
through drastic reduction of lag time of delivery. • Introduced electronic inward remittance register.
• We are incorporating SAS AML (Anti Money Laundering) • Implementation of EBL Connect for corporate customers
Solutions to our core banking and card management (Payroll, A/C to A/C transfers, RTGS, BEFTN, etc.).
Highlights of Trade Business & Operations • Centralization of cheque clearing process at Dhaka for
“Inward Clearing” cheques of Chittagong based branches.
Sustainable growth of export: USD 1.18 billion export
processed in 2016 (USD 1 billion in 2015) with a hike in both • Introduced API (Application Program Interface), an
RMG as well as in other unconventional sectors. automated process, to receive inward remittance faster from
the Exchange Houses abroad (EBL has agency arrangements
Combating money laundering and terrorist financing: We with 19 overseas Exchange Companies abroad along with
remained vigilant to combat Anti Money Laundering and the International Agencies like -Money Gram, Western
Terrorist Financing and monitored closely the transactional Union, and Express Money through which it receives
activities in line with UN/US/OFAC restriction lists. remittances from Kuwait, Oman, Bahrain, UAE, UK and
Furthermore, our agreement with Lloyds helped us to check other Middle-East countries).
vessel’s route, flagship and ownership which significantly
assisted us to prevent our international trade platform from • Collecting BTCL bills through “EASY BILL”.
becoming an attractive avenue for money launderers. • Automated weekly Bond Revaluation Calculator for Govt.
Going green: Trade operation has already implemented Securities.
Database Management System for converting relevant • Automated FT modules in CBS, directly plugged with
documents into digital forms which helped us save storage and SWIFT that saves crucial operational time while reducing
money, boost productivity. manual errors.
Highlights of Service Delivery Performance Highlights of Cards Operations
(Centralized Bulk Processing Units)
Some notable activities of cards operations in 2016 are
Delivery of centralized services is ensured through seven highlighted below:
functional units namely Alternate Channel Operations,
Account Services, Item Processing, Non-Resident Business • Around 40,000+ cards were converted to EMV chip
Operations, Cash Management Operations, Treasury and throughout the year.
Investment Banking Operations and Regulatory Reporting & • Established 536 new Merchant Outlet Terminals in 2016
Reconciliation. for 170 Merchants and processed a significant amount of
• Enrollment of 8,500 plus customers in EBL SKY Banking, transactions.
the only comprehensive mobile banking app in the country • Started issuance and acceptance of merchant acquiring
to facilitate customers with the convenience and speed to do facilities for Diners Club card holders to perform retail and
a wide array of banking transactions. ATM transactions in any EBL merchants/partners.
• A Web Portal titled “EBL Connect” developed for providing • Issued a significant number of debit, credit and prepaid
corporate customers with cash management solution. Using cards in 2016 compared to last year.
this solution, customers can execute Fund Transfer, BEFTN,
RTGS, Payroll Transfer etc. without visiting any branch of Type of Card No. Issued in 2016 No. Issued in 2015
EBL.
Credit Card 25,039 20,080
• Implemented password complexity as well as dynamic Debit Card 34,121 28,363
password (OTP-One Time Password) for the users in
SWIFT login system, which was a timely initiative. Prepaid Card 20,190 23,673
IT: THE ENABLER OF BUSINESS

Information Technology (IT) is playing a vital role to direct ChequePro Solution for corporate customers to improve
banking business into new dimension across the world. Banks their process: An in-house developed online web based
are adopting new technology to offer innovative products ChequePro solution is for EBL Corporate Customers for
and services for its customers and increase shareholders’ printing EBL Cheque from their own premises. Using this
value. EBL is one of the leading technology entranced banks solution, EBL Corporate customers are printing EBL Cheques
in the country and is constantly focusing on transformation for their customers’ payment. This solution brings a significant
of its banking services through technology penetration. The time savings for Corporate Customers in cheque processing.
bank is continuously investing on IT solution development,
infrastructure upgrade and IT security to ensure smooth and
secured banking services to its valued customers.
EBL Earned Prestigious PCI DSS Compliance Certification:
Payment Card Industry Data Security Standard (PCI DSS)
Certification is one of the prestigious certification in the world
in payment brands domain. This standard addresses the security Online Portal of Cash Management: An in-house developed
of the cardholder accounts and transactions. Considering this, online Web based Portal is for Corporate Customers to receive
Bangladesh Bank also mandated PCI DSS for all the banks several types of transactional request like Fund Transfer, Cards/
and NBFI which store, process or transmit cardholders’ data. Payroll Transfer, EFTN and RTGs Transactions. This portal
The compliance scheme aims to secure credit, prepaid and empowers corporate customers to send transaction requests
debit card transactions against data theft and fraud. PCI DSS from their premises through secured environment which
also addresses security of the ATMs, POSs and other channels reduces paper based transaction requests and increases faster
which cardholder uses to do the transactions. execution of the transactions.
Fund Transfer Pricing System for ALM: An in-house
developed Fund Transfer Pricing (FTP) solution is for the ALM
desk of the bank. FTP is used to optimize sourcing and use of
funds by different business units which eventually contributes
to better profitability of the Bank through increased efficiency
in fund management. FTP enables the bank to ascertain
the profitability of different product lines as well as acts as a
management tool for the comparison of efficiency between
different business functions.
EBL is always vigilant for the security of the cardholders’

accounts and transactions. EBL took the initiatives to make
its card management system (CMS) PCI DSS compliant three
years back. PCI DSS requirements implementation was the true
reflection of the team work between Business, IT and IT Security
functions. The bank met all the requirements of the PCI DSS
and made a significant improvement in People, Process and
Technology domains. Finally after a long and relentless hard
work, EBL achieved this prestigious PCI DSS Certification
from the world renowned PCI Qualified Security Assessor
(QSA) Company called NCC Group, UK in October 2016.
EBL achieved this extraordinary certification under PCI DSS
Version 3.1. As part of the continuous improvement and
compliance requirements, EBL is now working on newly
released PCI DSS v3.2 requirements. As of today, only two
banks are PCI DSS compliant in Bangladesh.
Government Utility Bill Collection: We have developed an
online web based portal for Govt. Utility Bill collection by EBL
Branches. Currently, BTCL bill collection is done through this
portal and other utility bill collections will be integrated phase
by phase.
SERVICE QUALITY- ASPIRING TO BE THE

“BANK OF CHOICE”
We aspire to be the “Bank of Choice” to our customers by ensuring the best in class service in the industry. With that conviction,
the bank has designed its products, services and value propositions to provide superior services well suited to life style or business
needs of valued customers.
Our Approach
The glimpse of research and study program conducted in 2016:
Customer Satisfaction Index Innovations that Customers Value

This unique indexing system allows the bank to gauge bank’s We believe that innovation of products and processes is driven
overall standing in terms of service standard and customer by customers’ expectation. Keeping that in mind, customer
satisfaction. The Index has a scaling from 1 to 5 where 1 is the feedback received from different research and survey programs
ultimate score towards “Service Excellence”. The bank is making is immediately poured into the respective wings so that
continuous improvement in terms of Customer Satisfaction necessary product and process re-engineering can be initiated
Index. In the year 2016, the Customer Satisfaction Index stood to meet up the customers’ expectation.
at 1.51 whereas the index was 1.85 in 2014.
Motivated people for “Delightful Customers”
The bank believes that only motivated people can ensure
customer delight. Our people are our brand. The way they
treat our customers greatly reflects the brand image of the
bank. Apart from taking suitable pecuniary initiatives to
keep people motivated, adequate emphasis has been given to
undertake effective employee development programs through
proper assessment of employee needs in order to develop
employee skill on customer service experience management. In
the year 2016, the bank arranged Service Excellence training/
motivational sessions for 450 employees.
Leveraging technology to take customer convenience to the next level

EBL is committed to offer the best possible convenient way to meet customers’ banking needs within quickest possible time. To
fulfill this commitment, the bank has introduced several new generation tools that enable customers to enjoy their desired banking
service from anywhere. EBL SKYBANKING is one such new generation mobile application through which customer can do his/
her desired financial transactions like fund transfer, bill payment, card service request and many more. In addition to that the
bank’s contact center is fully equipped to provide banking solution 24X7 to customers at any part of the world.
Complaint Management Process

The bank has developed a structural process of complaint management which facilitates the customers to get solution within
shortest possible time.
Channels Actions
Call or visit a branch in person
Branch Fill in “Suggestion Form” available in all branches
Central Complaint Management Cell contact information also shown in the branch premises
Contact Centre: 16230 (from any mobile inside Bangladesh)

24X7 Contact centre
Contact Centre: 028332232 (from anywhere in the world)
Website Access website: https://www.ebl.com.bd/home/complaint_cell
Email helpline@ebl.com.bd
Mobile Application Raise your complaint directly through EBL SKYBANKING
Letter Send letter to: Any customer touch point / Head Office
Protecting Customer Rights by Central Complaint

Management Cell
For efficient resolution of customer complaints, the bank
has constituted a Central Customer Service and Complaint
Management Cell approved by the Board of Directors. The
major responsibilities of the Cell are to protect the customer
right by monitoring effective resolution of the customer
complaint received through different channels and identify
necessary improvement areas to stop recurrence of similar
complaints.
Complaint Index-Complaint per 1000 customers Strategic priorities for 2017

To automate the service management process to monitor
customers’ experiences promptly and efficiently. In this
connection, the bank will introduce two new automated systems
that will allow the Bank to take the customer satisfaction to the
next level.
 Automation of the Complaint Management Process:
 The automated complaint management system will
create accountability within the process which will
ensure timely resolution of the complaints raised by
the customers.
 The automated system will generate a unique token
for each complaint which will help the customer track
their complaint from any channel.
 The system will have an inbuilt notification system to
Assessing Post Incident Experience of the notify the customer upon logging and resolution of
Complainants customer complaint.
The complaint resolution process does not stop just after the  Automation of Service Request Tracker:
resolution of the complaint, the bank continues to follow the
 An automated solution that will enable customer
post incident experience of the complaining customers. The
service units to track the service requests raised by the
bank continuously receives feedback from the complainants
customers through different channels.
to evaluate the effectiveness of the complaint management
process and eliminate the negative elements that eventually  The system will have inbuilt automated alarm system
create customer dissatisfaction. In the post factor survey on for non-execution of customer’s request within the
complainants, more than 90% of the complainants said that standard timeframe with automatic escalation facility.
they are delighted with the service standard of EBL and will  The system will create accountability within the
continue banking relationship on future. service request executors and ensure timely delivery
of the service requested by the customers.
HUMAN CAPITAL
Human capital is considered as the key asset for a company that provides financial services. It is the collective capability, knowledge
and skills of the people employed by an organization. Apart from being an equal opportunity employer, we hire attitude, nurture
talents, offer career and value diversity which, in return, make EBL the “Employer of Choice” and a great place to work with fun
and pride.
Performance Highlights in 2016
Code of Conduct and Ethical Guidelines • Hospitalization, Maternity and Medical Benefits
The Bank has a written Code of Conduct and Ethical Guidelines • End Service Benefits (Provident Fund, Gratuity,
that convey corporate philosophy and guide its people to take Superannuation, Leave Encashment) etc.
right course of action especially when they are confronted with
situations involving ethical dilemmas. Compliance to these
Learning & Development (L&D)
codes and standards are mandatory. Its objective is to provide EBL always concentrates on continuous development of the
a safe, coherent and disciplined environment within which our people so that they can develop new skills as well as sharpen
people can perform without compromising compliance and their available skill sets. In 2016, EBL was more focused to
prepare to be active and reflective citizens with a disposition to increase cross functional knowledge among the employees so
lifelong career with EBL. that people can work in any desk. EBL organized lots of training
Employee Benefits sessions across Bangladesh for 250 people on different topics
such as - leadership, team building and customer satisfaction
Remuneration and Benefits: In line with the objective of to help people grow as effective business leaders for tomorrow.
fostering a high performance culture, EBL has a well-designed
compensation and benefit programs that help attract, retain Learning and development programs cover wide range of
and motivate performers to meet challenging goals. EBL offers contemporary topics like: Major Policy Issues & Directives
competitive pay packages for real performers. The following of Bangladesh Bank, Legal Aspects of Banking, Credit Risk
benefits received by EBL employees- Management, Managing Fraud in Banks, Customized SME
• Market driven compensation package Training provided to our CNB Employees. In 2016, EBL
organized IT awareness training programs for 825 people and
• Yearly Performance Bonus
Money Laundering Prevention Act-2012 and Anti-Terrorism
• Interest free car loan
Act 2012 training for 1,012 people. Most importantly, number
• Subsidized House Building Loan with life insurance of certified professionals working at EBL as on Dec-31,2016 are
coverage 5 CA, 2 CMA, 5 CS, 1 ACCA, 4 CISA, 1 CIPD, 1 CFA, 17 CDCS
• Furniture Allowance and 26 CSA Certified from Omega.
2016 2015
Types of L & D Program
No of L&D Programs No of Participants No of L&D Programs No of Participants
Local Training 177 480 170 500
In house Training 86 4,174 80 4,043
Foreign Training 16 29 29 73
e-learning 14 3,214 16 3,240
Total 293 7,897 295 7,856
Equal Opportunity and Diversity of the employees and make sure that s/he is matched with a job
role that they will enjoy and excel in.
Equal Opportunity: EBL ensures equal opportunity for all
employees who are treated equitably and fairly without any Grievance Management: Workplace grievance is discontent
prejudice or bias. We don’t discriminate on the grounds of or the feeling of being victimized at work. If any of EBL
gender, age, racial origin, religious affiliation, disability or employees has any concern or problem that they haven’t been
marital status. Recruitment decisions are taken on the basis able to resolve, they can make a formal grievance complaint
of an individual’s ability and suitability to do a particular job. to the authority. EBL has its proper grievance handling policy
Equal opportunities are practiced through following measures: that explains how the process works and we share it with all
employees. eblHR frequently arranges awareness sessions
• Competitive merit-based selection processes for recruitment especially with the female employees to ensure their comfort
and promotion and address grievances appropriately.
• A workplace that is free from unlawful discrimination, Work Life Balance: Work life balance plays a vital role for
harassment or bullying building up positive ambience. Balanced employees tend to feel
• Fair practices and behavior in the workplace more motivated and less stressed out at work that eventually
help increase bank’s productivity and reduce number of
• Fair allocation of workloads
conflicts among co-workers and management. We ensure our
• Equal access to benefits and conditions employees leave office just immediate after office hour. Hence,
No employees are allowed to work after 7.00 pm. EBL has
• Fair processes to deal with work-related complaints and
already built a reputation within the industry for encouraging
grievances
work-life balance.
Diversity: We encourage and manage diversity through:
Human Resources Analysis
• Emphasizing communication that all employees understand
our policies, procedures, ethical guidelines, service Headcount
excellence, safety rules, and other important information. Employees 2016 2015
Permanent Employees 1,584 1,577
• Viewing employees as an individual by avoiding both
Contractual:
positive and negative stereotypes.
Trainee Assistant Officer (Cash) 225 196
• Encouraging employees to work in diverse groups to let Trainee Assistant Officer (Others) 474 519
them know and value one another as individual and build Sales Executive 368 597
team cohesion. KYC & Scanning Project 20 25
• Open-mindedness by developing relationships with Total 2,671 2,914
colleagues whose backgrounds differ and looking for ways
to incorporate diverse perspectives and talents into efforts
to achieve the organizational goals.
Great place to work

Employee Engagement: We encourage employee engagement
to increase belongingness and goal congruence among diverse
set of people. We value our people’s suggestions, ask for their
ideas, listen to them carefully and then complete the planning
loop. Employee recognition is one of our top engagement
drivers. We organize ‘Coffee with MD’, an induction meeting
by new joiners with Managing Director & CEO. We arrange
periodic town hall meetings, various awareness sessions,
outdoor activities, meetings with renowned leaders in various
fields, discussion sessions etc. as part of employee engagement
program. Most importantly, we consider the talents and skills
Gender and Average Age of Employees • Efficiency/Effectiveness-Time to fill, process of hire, cost
Particulars 2016 2015 per hire, qualifications, satisfaction
Number of employees 2,671 2,914 • Transparency- Fair process of recruitment for all candidates
Female Representation 17.78% 17.12% for particular positions
Average Age 35.54 Years 33.33 Years
• Diversity- Candidates with diverse backgrounds, using a
variety of sources to attract talented people.
Age Distribution
• Business impact — Candidate performance, satisfaction,
productivity and retention.
Succession planning
Through succession planning, Bank ensures that successors are
ready for the continuity of key positions and critical roles. We
set our HR strategy for every three years; where we identify our
key positions, future leadership challenges regarding human
resources. And, based on three years strategic HR plan, we take
our talent management and succession planning agenda to
implementation level which is a continuous process.
Starting from the resourcing stage, Bank always keeps in mind
that succession planning is required for future leadership. In
this case, Bank is mostly relying on home grown people (80:20
ration model). Most importantly, our future leader development
program is designed to develop highly qualified managers and
future leaders for the Bank. This program provides exposures
of various operational settings and help them acquire required
knowledge and skills to become the successful leaders. With
the proven experiences, these juniors will move to the senior
management positions in future. They will also have a clear
career progression and receive an extensive development
Performance Appraisal programs to fine tune their skills and knowledge.
Objectivity, fairness and timeliness are the words that best
describe the yearly appraisal process at EBL. Here at EBL, Human Rights, Health & Safety
performance appraisal is primarily result oriented but attitude, EBL always puts its employee’s first ensuring human rights,
team spirit and leadership traits do play a pivotal role too. health and safety with a commitment to serve better. Our staff
Employees are required to demonstrate their abilities to the house building loan (insurance covered) is fully secured by life
fullest potential to get recognized and rewarded. Performances insurance coverage to protect our people and their family at
are assessed on a five point scale (1 to 5) where 1 is the best and the time of distress situations. We also provide hospitalization
yearly increment and bonus are linked with the rating. facility to our employees and their dependents. Our every
employee receives first aid training through Medi Aid book
The Plan for People – Performance is an annual process which
at the day of joining that helps them to prepare well for any
includes:
urgent and immediate lifesaving and other measures. We
1. Assessment of the financial or non-financial targets; have appointed doctor to ensure medical emergencies for our
employees. Every year we arrange awareness session on cervical
2. Assessment of the competencies of the individual in
cancer, hepatitis A, B, C & E and other critical diseases for our
achieving the content of the job;
employees. Moreover, we arrange fire drill at our premises
3. Assessment of overall performance. annually as we are concerned about our people’s safety. We have
Superannuation Fund Scheme for all permanent employees.
A formal assessment using a standard Performance Assessment
Form takes place at the end of the year. Way Forward
Talent Acquisition • Employee satisfaction survey
• Review of all HR Policies
EBL Human Resources (HR) strategically partners with
Business Units and Leaders to achieve mutual goals and • Review the manpower planning for whole Bank
ultimately drive business growth. Recruitment and selection • Upgradation of HRIS (Human Resources Information
process of EBL is governed by the following guiding principles: System)
HUMAN RESOURCE ACCOUNTING

Human Resource Accounting (HRA) is the activity of knowing the cost invested for employees towards their recruitment, training
& development, salary payment & other benefits and in return knowing their contribution to organization towards its profitability.
HRA can be useful as a managerial tool to aid in making managerial decisions that will benefit the long-run strategic goals and
profitability of the company.
Need for HRA measurement and reporting standards. This would lend support
to the possibility that future financial reports may include
The corporate plan aiming for expansion, diversification,
nontraditional measurements such as the value of human
changes in technology, operation and business growth etc. has
resources using HRA methods.
to be worked out with the availability of human resources for
such placements or key positions. If such manpower is not Practice in Bangladesh and EBL’s Approach towards
likely to be available, HR accounting suggests modification of
HRA
the entire corporate plan that offsets uncertainty and change
enabling the organization to have the right person for the right At present, no particular accounting standard has been
job at the right time and place. introduced from statutory authorities and regulatory bodies
for Human Resources Accounting (HRA) in Bangladesh. Since,
Global Practice HRA is quite useful for managerial decision making, EBL
The strong growth of international financial reporting uses the information derived from HRA to make an effective
standards (IFRS) is an indication that the environment for decision for achieving long-run strategic goals and profitability
financial reporting encourages the consideration of alternative of the company.
Employee Productivity
Taka in million
No. of permanent employees 1584 1577
Per employee operating profit 4.05 3.30
Per employee PBT 2.78 2.17
Per employee PAT 1.68 1.41
HR EVENT HIGHLIGHTS 2016
Annual Outstanding Performers Award Training on Leadership and Team Building
Training on Women Leadership Let’s Hurdle MT 2015 & PO 2016 Batch
Road Show at University of Dhaka Regional Focus Group Discussion
Discussion session for Sylhet Area colleagues Hepatitis A & Hepatitis B awareness programs and Discussion Session for Sales
team female colleagues
EBL NEST: A CENTER FOR IDEA GENERATION

EBL Capacity Enhancement Center, also called as EBL Nest, is a creative space for the change makers. The mission is to combine
our talents and creative potentials to direct EBL into sustainable growth path. The cozy and unconventional setting of the center is
designed to inspire thinking out-of-the-box. Each and every participant who comes to EBL NEST is expected to share and discuss
the challenges of day-to-day operations as well as to think innovative ways and means to deliver service excellence.
Regular brainstorming sessions were held on topics selected on the basis of strategic interest of the bank; some of which are
mentioned below:
EBL NEST is no longer a brainstorming studio for conducting “It was indeed a unique experience at EBL Nest this evening.
regular session only. It has become an important hub for Especially being far from the mundane activities at office,
arranging meetings and workshops which in turn help to save I really enjoyed every moment here exchanging views on
venue cost. Some programs conducted at EBL NEST in 2016 leadership qualities and success models drawing from personal
apart from regular brainstorming sessions are as follows: experience. The environment shows the finesse of the officers
of EBL and their sense of art and aesthetic values. I wish this
g Board Meeting
continues in the same spirit for all times to come.” (Fazle Kabir,
g Workshop on Business Proposal Analysis Governor, Bangladesh Bank).
g Creating Customer Delight “A delight to see the NEST – taking back to India a pleasant
experience. Great thought and effort. Way to go Eastern Bank!”
g AML Guidelines, Ideal ALM practices and Managing
(Tejal Vora, J.P. Morgan, Mumbai, India).
critical liquidity ratios
“Thank You for ‘NESTING’ the FMO Team from the
g Session for comparative evaluation of core banking
Netherlands. We feel inspired and energized!” (Dave Smit&
solutions (UBS vs. Finacle)
Patience Mayaki, FMO).
g Session on Career Planning and Cross-Selling, Impaired
“Nest of idea development. Great stuff that development bank
Assets & Recovery Techniques
like ADB could learn ourselves” (Biao Huang, Investment
g Master Class on Retail Banking Specialist, Asian Development Bank).
g Conference of Cost Olympic Committee (CoC) In today’s competitive banking industry, customer satisfaction
g Workshop on Court Cases conducted by 3 Renowned and delight has become the essence of success. To cope up
Judges with changing customer demands, service propositions and
commitment need to be monitored at a regular interval to gauge
We had SK Sur Chowdhury, Deputy Governor of Bangladesh whether the bank is meeting ever increasing expectation of its
Bank and Fazle Kabir, Governor of Bangladesh Bank, as guest valued customers. With an endeavor to assess satisfaction level
speakers for our “Leadership Lecture Series’ program. Some of our customers, we have been selecting brainstorming topics
other important dignitaries visited NEST over the course of the in line with the needs, taste and convenience of our valuable
year and the comments they made are captured below: customers.
Leadership Lecture Series : Fazle Kabir, Governor, BB Session on “Masterclass on Retail Banking”
Training on Customer Delight Service Alignment within 0-5 Days

186 Annual Report 2016 Eastern Bank Ltd. FINANCIAL REPORTS 2016
FINANCIAL REPORTS
We have begun the year 2016 from a much stronger

base and are already beginning to reap the benefits
of our efforts. Our strong balance sheet is suggestive
of our sustainable growth year on year. This has been
possible for the loyalty of our clients. We are making
progress toward our goal of building a better Eastern
Bank committed to contribute to the growth in the
economy, serve society and create a positive impact
for our clients, our people, and our shareholders.
STATEMENT ON INTEGRITY OF FINANCIAL

STATEMENTS BY MD & CEO AND HEAD OF FINANCE
We hereby certify that the Financial Statements (FS) of Eastern Bank Limited (the Bank) as at and for the year ended 31 December 2016 have
been prepared in accordance with Bangladesh Financial Reporting Standards (BFRSs), the “First Schedule” (section 38) of the Bank Company
Act 1991 (amended up to 2013), BRPD Circular no. 14 dated 25 June 2003 and other relevant circulars/instructions of Bangladesh Bank. The
accounting policies used in preparation of the FS are appropriate and are consistently applied by the Bank. In case the requirement of provisions
and circulars issued by Bangladesh Bank differ with those of other regulatory authorities and financial reporting standards, the provisions and
circulars issued by Bangladesh Bank shall prevail. Consequently, adequate disclosures of such deviations have been made in Note 2.1 to the FS.
Estimates and judgments relating to the FS were made on a prudent and reasonable basis; in order that the FS reflect in a true and fair manner,
the form and substance of transactions and present the state of affairs reasonably. To ensure this, the Bank has taken proper and sufficient care
in installing a system of internal control and accounting records, for safeguarding assets and preventing and detecting frauds as well as other
irregularities, which is reviewed, evaluated and updated on an ongoing basis. Our Internal Auditor has conducted periodic audits to provide
reasonable assurance that the established policies and procedures of the Bank are consistently followed. However, there are inherent limitations
that should be recognized in weighing the assurance provided by any system of internal controls and accounting.
We certify to the Board that:
i. We have reviewed Financial Statements of the Bank for the year 2016 and to the best of our knowledge and belief:
a) these statements do not contain any materially untrue statement or omit any material fact or contain statements that might be misleading;
b) these statements together present a true and fair view of the Bank’s affairs and are in compliance with existing accounting standards and
applicable laws.
ii. There are, to the best of knowledge and belief, no transactions entered into by the Bank during the year which are fraudulent, illegal or
violation of the Bank’s code of conduct.
Masudul Hoque Sardar Ali Reza Iftekhar

Head of Finance Managing Director & CEO

Independent auditor’s report

to the shareholders of Eastern Bank Limited
Report on the financial statements
We have audited the accompanying consolidated financial statements of Eastern Bank Limited and its subsidiaries (the “Group”) as well as the
separate financial statements of Eastern Bank Limited (the “Bank”), which comprise the consolidated balance sheet and the separate balance sheet
as at 31 December 2016, and the consolidated and separate profit and loss accounts, consolidated and separate statements of changes in equity and
consolidated and separate cash flow statements for the year then ended, and a summary of significant accounting policies and other explanatory
information.
Management’s responsibility for the financial statements and internal controls
Management is responsible for the preparation of consolidated financial statements of the Group and also separate financial statements of the
Bank that give a true and fair view in accordance with Bangladesh Financial Reporting Standards as explained in Note 2 and for such internal
control as management determines is necessary to enable the preparation of consolidated financial statements of the Group and also separate
financial statements of the Bank that are free from material misstatement, whether due to fraud or error. The Bank Company Act, 1991 and the
Bangladesh Bank Regulations require the Management to ensure effective internal audit, internal control and risk management functions of the
Bank. The Management is also required to make a self-assessment on the effectiveness of anti-fraud internal controls and report to Bangladesh
Bank on instances of fraud and forgeries.
Auditor’s responsibility
Our responsibility is to express an opinion on these consolidated financial statements of the Group and the separate financial statements of the
Bank based on our audit. We conducted our audit in accordance with Bangladesh Standards on Auditing. Those standards require that we comply
with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements of
the Group and separate financial statements of the Bank are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements
of the Group and separate financial statements of the Bank. The procedures selected depend on our judgment, including the assessment of the
risks of material misstatement of the consolidated financial statements of the Group and separate financial statements of the Bank, whether due
to fraud or error. In making those risk assessments, we consider internal control relevant to the entity’s preparation of consolidated financial
statements of the Group and separate financial statements of the Bank that give a true and fair view in order to design audit procedures that are
appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of
accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements of the Group
and also separate financial statements of the Bank.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the consolidated financial statements of the Group and also separate financial statements of the Bank give a true and fair view of
the consolidated financial position of the Group and the separate financial position of the Bank as at 31 December 2016, and of its consolidated
and separate financial performance and its consolidated and separate cash flows for the year then ended in accordance with Bangladesh Financial
Reporting Standards as explained in Note 2.
Report on other legal and regulatory requirements
In accordance with the Companies Act 1994, Securities and Exchange Rules 1987, the Bank Company Act, 1991 and the rules and regulations
issued by Bangladesh Bank, we also report the following:
a) we have obtained all the information and explanation which to the best of our knowledge and belief were necessary for the purpose of our
audit and made due verification thereof;
b) to the extent noted during the course of our audit work performed on the basis stated under the Auditor’s responsibility section in forming
the above opinion on the consolidated financial statements of the Group and the financial statements of the Bank and considering the reports
of the Management to Bangladesh Bank on anti-fraud internal controls and instances of fraud and forgeries as stated under the Management’s
responsibility for the financial statements and internal control:
i) internal audit, internal control and risk management arrangements of the Group and the Bank as disclosed in Note 2 of the financial
statements appeared to be materially adequate;
ii) nothing has come to our attention regarding material instances of forgery or irregularity or administrative error and exception or anything
detrimental committed by employees of the Bank and its related entities other than matters disclosed in these financial statements;
c) financial statements of all subsidiaries of the Bank have been audited by other auditors and have been properly reflected in the consolidated
financial statements;
d) in our opinion, proper books of account as required by law have been kept by the Group and the Bank so far as it appeared from our
examination of those books;
e) the consolidated balance sheet and consolidated profit and loss account of the Group and the separate balance sheet and separate profit and
loss account of the Bank dealt with by the report are in agreement with the books of account;
f) the expenditure incurred was for the purposes of the Bank’s business;
g) the consolidated financial statements of the Group and the separate financial statements of the Bank have been drawn up in conformity with
prevailing rules, regulations and accounting standards as well as with related guidance issued by Bangladesh Bank;
h) adequate provisions have been made for advances which are, in our opinion, doubtful of recovery;
i) the records and statements submitted by the branches have been properly maintained and consolidated in the financial statements;
j) the information and explanation required by us have been received and found satisfactory;
k) we have reviewed over 80% of the risk weighted assets of the Bank and we have spent around 4,850 person hours for the audit of the books
and accounts of the Bank.
Dhaka, 20 March 2017 Rahman Rahman Huq

Eastern Bank Limited and its subsidiaries

Consolidated Balance Sheet
as at 31 December 2016
2016 2015
Note
Taka Taka
PROPERTY AND ASSETS
Cash 3
Cash in hand (including foreign currencies) 3.1 2,035,038,421 1,781,735,932
Balances with Bangladesh Bank and its agent bank(s) (including foreign currencies) 3.2 10,164,025,705 9,162,962,735
12,199,064,126 10,944,698,667
Balance with other banks and financial institutions 4
In Bangladesh 4.1 9,799,656,546 10,947,113,801
Outside Bangladesh 4.2 826,202,789 528,187,921
10,625,859,335 11,475,301,722
Money at call and short notice 5 100,000,000 -
Investments 6
Government 6.1 18,320,613,148 19,775,255,082
Others 6.2 4,619,215,993 4,127,134,524
22,939,829,141 23,902,389,606
Loans and advances 7
Loans, cash credits, overdrafts, etc. 7.1 137,473,558,900 120,083,051,166
Bills purchased and discounted 7.2 18,897,775,910 14,366,370,854
156,371,334,810 134,449,422,020
Fixed assets including land, building, furniture and fixtures 8 5,954,156,754 5,953,130,377
Other assets 9 4,032,882,402 4,212,281,675
Non-banking assets 10 154,050,500 154,050,500
Total assets 212,377,177,068 191,091,274,567
LIABILITIES AND CAPITAL

Liabilities
Borrowings from other banks, financial institutions and agents 11 39,369,685,979 31,534,839,615
Deposits and other accounts 12
Current accounts and other accounts 12.1 16,651,527,406 15,413,733,946
Bills payable 12.2 797,002,510 910,454,248
Savings bank deposits 12.3 38,426,476,123 32,646,443,552
Fixed deposits 12.4 84,330,111,292 78,935,264,980
Bearer certificate of deposit - -
140,205,117,331 127,905,896,726
Other liabilities 13 11,970,564,023 10,943,083,283
Total liabilities 191,545,367,333 170,383,819,624
Capital/shareholders' equity
Paid-up capital 14 7,028,567,520 6,111,797,850
Statutory reserve 15 6,991,700,268 6,111,797,850
Dividend equalisation reserve 16 356,040,000 356,040,000
Excess of reserve over pre-take over loss-BCCI 17 617,792,231 617,792,231
Asset revaluation reserve 18 2,534,874,738 2,534,874,738
Reserve for amortisation of treasury securities (HTM) 19 6,200,987 2,764,446
Reserve for revaluation of treasury securities (HFT) 20 12,145,508 1,374,979,477
General reserve 130,000,000 130,000,000
Reserve against non-banking assets 21 141,288,665 141,288,665
Foreign currency translation difference 22 657,505 12,523,775
Surplus in profit and loss account 23 3,012,542,313 3,313,595,911
Total shareholders' equity 20,831,809,735 20,707,454,943
Total liabilities and shareholders' equity 212,377,177,068 191,091,274,567

Consolidated Balance Sheet
2016 2015
Note
Taka Taka
OFF BALANCE SHEET ITEMS

Contingent liabilities 24
Acceptances and endorsements 24.1 32,666,382,402 29,367,215,759
Letters of guarantees 24.2 15,905,357,265 13,233,474,177
Irrevocable letters of credit 24.3 17,720,419,522 17,203,519,865
Bills for collection 24.4 5,836,991,295 5,667,837,422
Other contingent liabilities - -
Total 72,129,150,484 65,472,047,223
Other commitments
Documentary credits and short term trade-related transactions - -
Forward assets purchased and forward deposits placed 3,447,156,360 -
Undrawn note issuance and revolving underwriting facilities - -
Undrawn formal standby facilities, credit lines and other commitments - -
Total off-balance sheet items including contingent liabilities 75,576,306,844 65,472,047,223
The annexed notes 1 to 45 form an integral part of these financial statements.
Managing Director & CEO Director Director Chairman
As per our report of same date.
Dhaka, 20 March 2017 Auditor

Rahman Rahman Huq

Consolidated Profit & Loss Account
for the year ended 31 December 2016
2016 2015
Note
Taka Taka
Interest income 25 13,662,629,884 13,616,377,868
Interest paid on deposits and borrowings etc. 26 (8,055,398,021) (9,933,643,160)
Net interest income 5,607,231,863 3,682,734,708
Investment income 27 3,261,885,000 3,534,606,776
Commission, exchange and brokerage 28 2,637,539,212 2,747,234,544
Other operating income 29 181,614,792 189,986,279
6,081,039,004 6,471,827,599
Total operating income (A) 11,688,270,867 10,154,562,307
Salary & allowances (except those of MD) 30 2,883,203,413 2,625,916,475
Rent, taxes, insurance, utilities etc. 31 655,424,381 622,899,704
Legal & professional expenses 32 110,821,082 105,177,134
Postage, stamp, telecommunication, etc. 33 144,449,537 133,502,520
Stationery, printing, advertisements, etc. 34 302,496,398 283,910,528
Managing Director's salary and allowances (Bank only) 35 20,413,194 19,240,568
Directors' fees & expenses 36 3,963,477 4,068,190
Auditors' fees 37 1,598,574 1,304,483
Depreciation and repair of Bank's assets 38 503,229,958 508,251,628
Other expenses 39 546,735,667 496,252,839
Total operating expenses (B) 5,172,335,681 4,800,524,069
Profit before provision (C=A-B) 6,515,935,186 5,354,038,238
Provision for loans and advances: 13.4.1
General provision 283,884,025 201,443,264
Specific provision (net off w/off recovery) 1,906,885,158 2,020,593,013
Provision for off-balance sheet exposures 101,003,143 41,962,728
Other provision 40 (292,883,038) (457,434,831)
Total provision (D) 1,998,889,288 1,806,564,174
Total profit before taxes (E=C-D) 4,517,045,898 3,547,474,064
Provision for taxation (F) 41
Current tax expense 1,830,849,042 1,344,784,441
Deferred tax (income)/expense (30,138,865) (79,919,330)
Total provision for tax 1,800,710,177 1,264,865,111
Net profit after tax (G=E-F) 2,716,335,721 2,282,608,953
Appropriations
Statutory reserve 15 (879,902,418) -
General reserve - -
(879,902,418) -
Retained surplus for the year 1,836,433,303 2,282,608,953
Earnings per share (EPS) 42 3.86 3.25

Rahman Rahman Huq

Consolidated Cash Flows Statement
2016 2015
Note
Taka Taka
A) Cash flows from operating activities
Interest receipts in cash 14,560,752,356 13,124,823,464
Interest paid (8,082,609,372) (9,388,080,842)
Dividend receipts 83,507,340 19,499,577
Fees and commission receipts in cash 2,637,539,211 2,954,668,920
Income from investment (other than dividend received) 3,510,540,389 3,458,124,093
Recovery of loans previously written off 13.4.1 380,021,967 281,710,606
Cash payments to employees (including directors) (2,860,908,860) (2,625,112,009)
Cash payments to suppliers (1,450,104,087) (1,371,452,996)
Income taxes paid 13.3.2 (987,773,957) (1,725,978,643)
Receipts from other operating activities 181,614,791 189,986,279
Payments for other operating activities (546,735,667) (714,625,374)
Cash generated from operating activities before changes in operating assets and liabilities (i) 7,425,844,111 4,203,563,075
Increase/(decrease) in operating assets and liabilities

Sale/(purchase) of trading securities (196,623,896) 9,299,141,812
Loans and advances to customers (other than banks) (21,925,596,087) (14,053,175,938)
Other assets 43 (1,047,202,631) (383,822,800)
Deposits from other banks 12.a.1 297,406,250 720,581,038
Deposits from customers (other than banks) 12,172,697,540 9,932,696,977
Recovery from BCCI assets 17.2 - 31,261,200
Liability for tax (812,936,221) 461,113,531
Liabilities for provision (2,378,911,255) (2,088,274,777)
Other liabilities 44 835,539,112 1,280,065,147
Cash generated from operating assets and liabilities (ii) (13,055,627,188) 5,199,586,190
Net cash from operating activities (i+ii) (5,629,783,077) 9,403,149,265
B) Cash flows from investing activities
(Purchase)/sale of non-trading securities (202,512,063) (7,710,111,484)
(Purchase)/sale of property, plant and equipment (267,343,647) (282,468,853)
Net cash used in investing activities (469,855,710) (7,992,580,337)
C) Cash flows from financing activities
Dividend paid (cash dividend) (1,222,359,570) (1,222,359,570)
Net cash from financing activities 6,612,486,794 3,451,105,553
D) Net increase in cash and cash equivalents (A+B+C) 512,848,012 4,861,674,483
E) Effects of exchange rate changes on cash and cash equivalents (10,223,940) 3,222,383
F) Opening cash and cash equivalents 22,424,784,489 17,559,887,623
G) Closing cash and cash equivalents (D+E+F)* 22,927,408,561 22,424,784,489
*Cash and cash equivalents at end of the year consists of:
Balances with Bangladesh Bank and its agent bank(s) 3.2 10,164,025,705 9,162,962,735
Balances with other banks and financial institutions 4 10,625,859,335 11,475,301,722
Prize bonds 6.1 2,485,100 4,784,100
22,927,408,561 22,424,784,489

188
Consolidated Statement of Changes in Equity

Figures in Taka
Excess of Reserve for Reserve for Foreign

Statutory Dividend reserve over Asset amortisation revaluation General Reserve currency Surplus in
Particulars Paid up capital reserve equalisation pre take-over revaluation of treasury of treasury reserve against non translation profit and loss Total equity
Annual Report 2016
reserve loss-BCCI reserve securities securities banking assets difference account

(HTM) (HFT)
Balance as at 1 January 2016 6,111,797,850 6,111,797,850 356,040,000 617,792,231 2,534,874,738 2,764,446 1,374,979,477 130,000,000 141,288,665 12,523,775 3,313,595,911 20,707,454,943
Bonus share issued for 2015 916,769,670 - - - - - - - - - (916,769,670) -
Cash dividend paid for 2015 - - - - - - - - - - (1,222,359,570) (1,222,359,570)
Eastern Bank Ltd.
Transfer to statutory reserve - 879,902,418 - - - - - - - - (879,902,418) -

Adjustment of revaluation of
- - - - - - (1,362,833,969) - - - - (1,362,833,969)
treasury securities (HFT)
Reserve for amortisation of
- - - - - 3,436,541 - - - - - 3,436,541
treasury securities (HTM)
Foreign currency translation
- - - - - - - - - (11,866,270) - (11,866,270)
difference
Net profit for the year - - - - - - - - - - 2,716,335,721 2,716,335,721
Currency adjustment for OBU - - - - - - - - - - 1,642,339 1,642,339
Balance as at 31 December 2016 7,028,567,520 6,991,700,268 356,040,000 617,792,231 2,534,874,738 6,200,987 12,145,508 130,000,000 141,288,665 657,505 3,012,542,313 20,831,809,735
for the year ended 31 December 2015 Figures in Taka

Statutory Dividend reserve over Asset amortisation revaluation General Reserve currency Surplus in
Particulars Paid up capital reserve equalisation pre take-over revaluation of treasury of treasury reserve against non translation profit and loss Total equity
reserve loss-BCCI reserve securities securities banking assets difference account
(HTM) (HFT)
Balance as at 1 January 2015 6,111,797,850 6,111,797,850 356,040,000 586,531,031 3,689,495,550 2,076,822 805,190,521 130,000,000 178,971,165 9,963,290 2,252,684,630 20,234,548,709
Surplus/(deficit) on account of - - - - (1,154,620,812) - - - - - - (1,154,620,812)
revaluation of properties
Reserve for revaluation of treasury - - - - - - 569,788,956 - - - - 569,788,956
securities (HFT)
Reserve for amortisation of treasury - - - - - 687,624 - - - - - 687,624
securities (HTM)
Adjustment of reserved for non- - - - - - - - - (37,682,500) - - (37,682,500)
banking assets
Recovery of pre-take over loss - - - 31,261,200 - - - - - - - 31,261,200
Foreign currency translation difference - - - - - - - - - 2,560,485 - 2,560,485
Cash dividend paid - - - - - - - - - - (1,222,359,570) (1,222,359,570)
Currency adjustment for OBU - - - - - - - - - - 661,898 661,898
Balance as at 31 December 2015 6,111,797,850 6,111,797,850 356,040,000 617,792,231 2,534,874,738 2,764,446 1,374,979,477 130,000,000 141,288,665 12,523,775 3,313,595,911 20,707,454,943
FINANCIAL REPORTS 2016

Consolidated Liquidity Statement
(Asset and Liability Maturity Analysis)
Figures in Taka
Not more than Above 5 years

Particulars 1-3 months term 3-12 months term 1-5 years term Total
1 month term term
Assets
Cash in hand (including balance with Bangladesh Bank and its agent Bank) 12,199,064,126 - - - - 12,199,064,126
Balances with other banks and financial institutions 2,911,072,657 4,552,374,878 3,162,411,800 - - 10,625,859,335
Money at call and short notice 100,000,000 - - - - 100,000,000
Investments 2,485,100 12,199,041 7,432,202,110 7,271,900,788 8,221,042,102 22,939,829,141
Loans and advances 17,791,062,506 25,027,760,979 57,571,542,698 50,598,195,066 5,382,773,561 156,371,334,810
Fixed assets including land, building, furniture and fixtures 11,940,672 23,881,345 107,467,456 506,851,998 5,304,015,283 5,954,156,754
Other assets 16,006,838 1,353,756,182 654,623,283 1,253,196,099 755,300,000 4,032,882,402
Non-banking assets - - 19,617,500 134,433,000 - 154,050,500
Total assets 33,031,631,899 30,969,972,425 68,947,864,847 59,764,576,951 19,663,130,946 212,377,177,068

33,031,631,899 30,969,972,425 68,947,864,847 59,764,576,951 19,663,130,946 212,377,177,068
Liabilities
Borrowing from other banks, financial institutions and agents 7,123,631,924 7,937,208,533 12,930,139,040 9,468,157,221 1,910,549,261 39,369,685,979
Deposits and other accounts 19,298,138,292 19,051,650,211 33,576,136,047 66,048,436,311 2,230,756,470 140,205,117,331
Provisions & other liabilities 1,593,745,144 770,149,013 447,384,243 6,855,721,131 2,303,564,492 11,970,564,023
Total liabilities 28,015,515,360 27,759,007,757 46,953,659,330 82,372,314,663 6,444,870,223 191,545,367,333
Net liquidity gap 5,016,116,539 3,210,964,668 21,994,205,517 (22,607,737,712) 13,218,260,723 20,831,809,735
Cumulative net liquidity gap 5,016,116,539 8,227,081,207 30,221,286,724 7,613,549,012 20,831,809,735 -
Annual Report 2016
Eastern Bank Ltd.
189

Balance Sheet
2016 2015
Note
Taka Taka
PROPERTY AND ASSETS
Cash 3
Balances with Bangladesh Bank and its agent bank(s) (including foreign currencies) 3.2 10,164,025,705 9,162,962,735
12,198,971,592 10,944,412,837
Balance with other banks and financial institutions 4
In Bangladesh 4.1 9,021,366,991 10,671,688,124
Outside Bangladesh 4.2 4,550,920,216 3,019,295,100
13,572,287,207 13,690,983,224
Investments 6
Government 6.1 18,320,613,148 19,775,255,082
Others 6.2 3,128,020,635 3,622,708,653
21,448,633,783 23,397,963,735
Loans and advances 7
Loans, cash credits, overdrafts, etc. 7.1 137,051,246,091 118,427,210,727
Bills purchased and discounted 7.2 15,032,441,445 11,799,113,738
152,083,687,536 130,226,324,465
Fixed assets including land, building, furniture and fixtures 8 5,940,093,948 5,942,705,054
Other assets 9 5,687,733,590 5,206,959,803
Non-banking assets 10 154,050,500 154,050,500
Total assets 211,185,458,156 189,563,399,618
LIABILITIES AND SHAREHOLDERS’ EQUITY

Liabilities
Borrowing from other banks, financial institutions and agents 11 39,061,159,749 30,543,479,439
Current accounts and other accounts 12.1 16,659,952,664 15,429,365,528
Bills payable 12.2 797,002,510 910,454,248
Savings bank deposits 12.3 38,426,476,123 32,646,443,552
Fixed deposits 12.4 84,400,727,353 79,003,770,247
Bearer certificates of deposit - -
140,284,158,650 127,990,033,575
Other liabilities 13 11,268,497,353 10,533,794,193
Total liabilities 190,613,815,752 169,067,307,207
Shareholders' equity
Paid-up capital 14 7,028,567,520 6,111,797,850
Statutory reserve 15 6,991,700,268 6,111,797,850
Dividend equalisation reserve 16 356,040,000 356,040,000
Excess of reserve over pre-take over loss-BCCI 17 617,792,231 617,792,231
Asset revaluation reserve 18 2,534,874,738 2,534,874,738
Reserve for amortisation of treasury securities (HTM) 19 6,200,987 2,764,446
Reserve for revaluation of treasury securities (HFT) 20 12,145,508 1,374,979,477
General reserve 130,000,000 130,000,000
Reserve against non-banking assets 21 141,288,665 141,288,665
Foreign currency translation difference 22 1,125,580 1,720,332
Surplus in profit and loss account 23 2,751,906,907 3,113,036,822
Total shareholders' equity 20,571,642,404 20,496,092,411
Total liabilities and shareholders' equity 211,185,458,156 189,563,399,618

Balance Sheet
2016 2015
Note
Taka Taka
OFF-BALANCE SHEET ITEMS

Contingent liabilities 24
Acceptances and endorsements 24.1 32,666,382,402 29,367,215,759
Letters of guarantees 24.2 15,905,357,265 13,233,474,177
Irrevocable letters of credit 24.3 17,720,419,522 17,203,519,865
Bills for collection 24.4 5,836,991,295 5,667,837,422
Other contingent liabilities - -
Total 72,129,150,484 65,472,047,223
Other commitments
Documentary credits and short term trade-related transactions - -
Forward assets purchased and forward deposits placed 3,447,156,360 -
Undrawn note issuance and revolving underwriting facilities - -
Undrawn formal standby facilities, credit lines and other commitments - -
Total off-balance sheet items including contingent liabilities 75,576,306,844 65,472,047,223

Rahman Rahman Huq

Profit & Loss Account
2016 2015
Note
Taka Taka
Interest income 25 13,545,638,173 13,338,187,892
Interest paid on deposits and borrowings etc. 26 (8,016,221,690) (9,793,129,887)
Net interest income 5,529,416,483 3,545,058,005
Investment income 27 3,315,432,277 3,576,370,328

Commission, exchange and brokerage 28 2,449,245,814 2,629,430,927
Other operating income 29 164,926,912 144,843,472
5,929,605,003 6,350,644,727
Total operating income (A) 11,459,021,486 9,895,702,732
Salary & allowances (except those of MD) 30 2,800,838,055 2,560,741,641
Rent, taxes, insurance, utilities etc. 31 635,809,908 604,864,153
Legal & professional expenses 32 109,721,716 104,249,918
Postage, stamp, telecommunication, etc. 33 138,553,553 127,867,304
Stationery, printing, advertisements, etc. 34 299,380,147 281,559,632
Managing Director's salary and allowances 35 20,413,194 19,240,568
Directors' fees & expenses 36 3,769,127 3,926,740
Auditors' fees 37 805,000 575,000
Depreciation and repair of Bank's assets 38 496,720,598 502,390,170
Other expenses 39 534,795,483 485,797,065
Total operating expenses (B) 5,040,806,781 4,691,212,191
Profit before provision (C=A-B) 6,418,214,705 5,204,490,541
Provision for loans and advances 13.4.1
General provision 283,884,025 201,443,264
Specific provision (net off w/off recovery) 1,902,684,147 2,020,593,013
Provision for off-balance sheet exposures 101,003,143 41,962,728
Other provision 40 (268,868,702) (476,064,123)
Total provision (D) 2,018,702,613 1,787,934,882
Total profit before taxes (E=C-D) 4,399,512,092 3,416,555,659
Provision for taxation (F) 41
Current tax expense 1,773,164,131 1,275,558,787
Deferred tax (income)/expense (30,138,865) (79,919,330)
Total provision for tax 1,743,025,266 1,195,639,457
Net profit after tax (G=E-F) 2,656,486,826 2,220,916,202
Appropriations
Statutory reserve 15 (879,902,418) -
General reserve - -
(879,902,418) -
Retained surplus for the year 1,776,584,408 2,220,916,202
Earnings per share (EPS) 42 3.78 3.16


Rahman Rahman Huq

Cash Flows Statement
2016 2015
Note
Taka Taka
Interest receipts in cash 14,459,952,512 12,848,541,447
Interest paid (8,043,433,043) (9,247,567,569)
Dividend receipts 78,344,764 101,306,370
Fees and commission receipts in cash 2,449,245,816 2,821,108,202
Income from investment (other than dividend received) 3,569,250,241 3,418,080,852
Recovery of loans previously written off 13.4.1 380,021,967 281,710,606
Cash payments to employees (including directors) (2,782,961,428) (2,559,873,725)
Cash payments to suppliers (1,417,702,446) (1,342,751,460)
Income taxes paid 13.3.2 (948,480,473) (1,688,991,842)
Receipts from other operating activities 164,926,911 144,843,472
Payments for other operating activities (534,795,483) (688,412,500)
Cash generated from operating activities before changes in operating assets and liabilities (i) 7,374,369,338 4,087,993,853
Increase/(decrease) in operating assets and liabilities

Sale/(purchase) of trading securities 782,145,588 9,539,969,644
Loans and advances to customers (other than banks) (21,880,661,882) (11,566,249,898)
Other assets 43 (1,103,952,043) (378,667,598)
Deposits from other banks 12.a.1 297,406,250 720,581,038
Deposits from customers (other than banks) 12,167,602,010 9,947,559,385
Recovery from BCCI assets 17.2 - 31,261,200
Liability for tax (794,544,794) 493,352,384
Liabilities for provision (2,398,724,580) (2,069,645,488)
Other liabilities 44 548,167,377 1,271,842,142
Cash generated from operating assets and liabilities (ii) (12,382,562,073) 7,990,002,809
Net cash from operating activities (i+ii) (5,008,192,735) 12,077,996,662
B) Cash flows from investing activities
(Purchase)/sale of non-trading securities (194,512,063) (7,711,558,484)
(Purchase)/sale of property, plant and equipment (259,872,371) (277,691,683)
Investment in Subsidiary-EBL Securities Limited (600,000,000) (500,000,000)
Net cash used in investing activities (1,054,384,434) (8,489,250,167)
Dividend paid (cash dividend) (1,222,359,570) (1,222,359,570)
Net cash from financing activities 7,295,320,741 3,300,482,819
D) Net increase in cash and cash equivalents (A+B+C) 1,232,743,577 6,889,229,314
E) Effects of exchange rate changes on cash and cash equivalents 820,161 1,249,911
F) Opening cash and cash equivalents 24,640,180,161 17,749,700,936
G) Closing cash and cash equivalents (D+E+F)* 25,873,743,899 24,640,180,161
*Cash and cash equivalents at end of the year consists of:
Balances with Bangladesh Bank and its agent bank(s) 3.2 10,164,025,705 9,162,962,735
Balances with other banks and financial institutions 4 13,572,287,207 13,690,983,224
Prize bonds 6.1 2,485,100 4,784,100
25,873,743,899 24,640,180,161

194
Statement of Changes in Equity

Figures in Taka

Paid-up Statutory Dividend reserve over Asset amortisation revaluation General Reserve currency Surplus in
Particulars capital reserve equalisation pre take-over revaluation of treasury of treasury reserve against non translation profit and loss Total equity
reserve reserve securities securities banking assets account
Annual Report 2016
loss-BCCI (HTM) (HFT) difference

Balance as at 1 January 2016 6,111,797,850 6,111,797,850 356,040,000 617,792,231 2,534,874,738 2,764,446 1,374,979,477 130,000,000 141,288,665 1,720,332 3,113,036,822 20,496,092,411
Bonus share issued for 2015 916,769,670 - - - - - - - - - (916,769,670) -
Cash dividend paid for 2015 - - - - - - - - - - (1,222,359,570) (1,222,359,570)
Eastern Bank Ltd.
Transfer to statutory reserve - 879,902,418 - - - - - - - - (879,902,418) -

Adjustment of revaluation of - - - - - - (1,362,833,969) - - - - (1,362,833,969)
treasury securities (HFT)
Reserve for amortisation of - - - - - 3,436,541 - - - - - 3,436,541
Foreign currency translation difference - - - - - - - - - (594,752) - (594,752)
Currency adjustment for OBU - - - - - - - - - - 1,414,917 1,414,917
Balance as at 31 December 2016 7,028,567,520 6,991,700,268 356,040,000 617,792,231 2,534,874,738 6,200,987 12,145,508 130,000,000 141,288,665 1,125,580 2,751,906,907 20,571,642,404

Paid-up Statutory Dividend reserve over Asset amortization revaluation General Reserve for currency Surplus in
Particulars capital reserve equalisation pre-take over revaluation of treasury of treasury Reserve non-banking translation profit and loss Total equity
reserve loss-BCCI reserve securities securities assets difference account
(HTM) (HFT)
Balance as at 1 January 2015 6,111,797,850 6,111,797,850 356,040,000 586,531,031 3,689,495,550 2,076,822 805,190,521 130,000,000 178,971,165 1,062,706 2,113,887,906 20,086,851,401
Surplus/(deficit) on account of - - - - (1,154,620,812) - - - - - - (1,154,620,812)
revaluation of properties
Reserve for revaluation of treasury - - - - - - 569,788,956 - - - - 569,788,956
securities (HFT)
Reserve for amortisation of - - - - - 687,624 - - - - - 687,624
Adjustment of reserved for non- - - - - - - - - (37,682,500) - - (37,682,500)
banking assets
Recovery of pre-take over loss - - - 31,261,200 - - - - - - - 31,261,200
Foreign currency translation difference - - - - - - - - - 657,626 - 657,626
Cash dividend paid - - - - - - - - - - (1,222,359,570) (1,222,359,570)
Currency adjustment for OBU - - - - - - - - - - 592,284 592,284
Balance as at 31 December 2015 6,111,797,850 6,111,797,850 356,040,000 617,792,231 2,534,874,738 2,764,446 1,374,979,477 130,000,000 141,288,665 1,720,332 3,113,036,822 20,496,092,411

Liquidity Statement
(Asset and Liability Maturity Analysis)
Figures in Taka
Not more than
Particulars 1-3 months term 3-12 months term 1-5 years term Above 5 years term Total
1 month term
Assets
Cash in hand (including balance with
12,198,971,592 - - - - 12,198,971,592
Bangladesh Bank and its agent Bank)
Balances with other banks and financial institutions 6,536,114,143 3,873,761,264 3,162,411,800 - - 13,572,287,207
Money at call and short notice 100,000,000 - - - - 100,000,000
Investments 2,485,100 12,199,041 5,941,006,753 7,271,900,788 8,221,042,101 21,448,633,783
Loans and advances 17,791,062,506 24,605,448,170 53,706,208,233 50,598,195,066 5,382,773,561 152,083,687,536
Fixed assets including land, building, furniture
11,705,823 23,411,647 105,352,410 497,040,379 5,302,583,689 5,940,093,948
and fixtures
Other assets 15,995,638 1,435,297,658 654,196,868 1,250,064,273 2,332,179,153 5,687,733,590
Non-banking assets - - 19,617,500 134,433,000 - 154,050,500
Total assets 36,656,334,802 29,950,117,780 63,588,793,564 59,751,633,506 21,238,578,504 211,185,458,156
Liabilities
Borrowing from other banks, financial
6,995,074,055 7,637,240,173 13,050,139,040 9,468,157,221 1,910,549,260 39,061,159,749
institutions and agents
Deposits and other accounts 19,306,563,550 19,122,266,272 33,576,136,047 66,048,436,311 2,230,756,470 140,284,158,650
Provisions & other liabilities 1,144,030,715 767,326,316 432,854,247 6,620,721,582 2,303,564,493 11,268,497,353
Total liabilities 27,445,668,320 27,526,832,761 47,059,129,334 82,137,315,114 6,444,870,223 190,613,815,752
Net liquidity gap 9,210,666,482 2,423,285,019 16,529,664,230 (22,385,681,608) 14,793,708,281 20,571,642,404
Cumulative net liquidity gap 9,210,666,482 11,633,951,501 28,163,615,731 5,777,934,123 20,571,642,404 -
Annual Report 2016
Eastern Bank Ltd.
195

Notes to the Financial Statements
as at and for the year ended 31 December 2016
1 The Bank and its activities

1.1 Eastern Bank Limited was incorporated in Bangladesh as a public limited company to carry out all kinds of banking business inside and
outside Bangladesh. The Bank took over the business, assets, liabilities and losses of erstwhile Bank of Credit & Commerce International
(Overseas) Limited (hereinafter referred to as BCCI) as they stood after reduction or adjustments in accordance with the provisions
of the BCCI (Reconstruction) Scheme, 1992. The Bank commenced operations from 16 August 1992 and at present it has 82 branches
across major cities in Bangladesh. The shares of the Bank is listed with both Dhaka Stock Exchange (DSE) Limited and Chittagong Stock
Exchange (CSE) Limited. The registered office of the Bank is located at Jiban Bima Bhaban, 10 Dilkusha C/A, Dhaka-1000.
The principal activities of the Bank are to provide a comprehensive range of financial products (loans and deposits) and services, personal
and commercial banking, trade services, cash management, treasury, securities and custodial services.
1.2 Offshore Banking Unit (OBU)

Offshore Banking Unit (“OBU” or “the Unit”) is a separate business unit of the Bank, operates its business through a separate
counter as governed under the rules and guidelines vide Bangladesh Bank’s letter ref. BRPD(P)744/(89)/2004-303 dated 25 January
2004. It gives loans (on and off-balance sheet exposures) and takes deposits in freely convertible foreign currencies to and from
person/institutions not resident in Bangladesh and Type - A (wholly foreign owned) units in EPZs in Bangladesh. It also gives
long term loans to industrial units outside EPZs and Type - B & Type - C industrial units within the EPZs subject to compliance
by the industrial units with the guidelines of BIDA and Bangladesh Bank. Besides, this unit provides bill discounting/financing
facilities accepted by Authorised Dealer (AD) in Bangladesh against usance LCs in accordance with Bangladesh Bank guidelines.
The unit commenced its operations from 19 May 2004 and its office is located at Jiban Bima Bhaban, 10 Dilkusha C/A (1st floor),
Dhaka-1000.
1.3 Subsidiaries of the Bank

The Bank has four fully owned subsidiaries; three of them have been in operations on the reporting date. These are EBL Securities
Limited, EBL Investments Limited and EBL Finance (HK) Limited. Although the subscription of another fully owned subsidiary ‘EBL
Asset Management Limited’ is completed, full fledged operation of this company is yet to start.
EBL Securities Limited

EBL Securities Limited (EBLSL), a securities brokerage firm acquired in two phases, is a public limited company having TRECs (Trading
Right Entitlement Certificate) and ordinary shares of both the bourses i.e. Dhaka Stock Exchange (DSE) Ltd. and Chittagong Stock
Exchange (CSE) Ltd. The principal activities of this subsidiary are to buying, selling and settlement of securities on behalf of investors
and in its own portfolio. Registered office of EBLSL is located at 59, Motijheel C/A (1st Floor), Dhaka-1000.
EBL Investments Limited

EBL Investments Limited (EBLIL) was incorporated on 30 December 2009. It obtained required license from BSEC in January 2013 and
started full fledged operations of merchant banking, portfolio management, underwriting etc. from June 2013. Registered office of EBLIL
is located at 59, Motijheel C/A (1st Floor), Dhaka-1000.

EBL Finance (HK) Limited, the first foreign subsidiary of EBL, was incorporated on 28 November 2011 with Hong Kong (HK) authority.
This subsidiary started its full fledged business operations (offshore trade finance, advising, documents collection etc.) in Hong Kong
during 2013 after obtaining all the required licenses from Bangladesh and HK authority. Registered office of EBL Finance (HK) Limited
is Unit 1201, 12th Floor, Albion Plaza, 2-6 Granville Road, Tsimshatsui, Hong Kong.
EBL Asset Management Limited

EBL Asset Management Limited (EBLAML) was incorporated on 9 January 2011 to carry out the business of asset management, capital
market operation, equity investment etc. Subscription of this company was completed in 2015 but full fledged business operation will
start after getting license from BSEC.
2 Basis of preparation and significant accounting policies

Basis of preparation
Separate and consolidated financial statements
The separate financial statements of the Bank as at and for the year ended 31 December 2016 comprise those of Domestic Banking Unit
(Main operations) and Offshore Banking Unit (OBU), and the consolidated financial statements of the group comprise those of ‘the Bank’
(parent company) and its subsidiaries (together referred to as ‘the group’ and individually referred to as ‘group entities/subsidiaries’).
There were no significant changes in the nature of principal business activities of the Bank and the subsidiaries during the financial year.
2.1 Statement of compliance
The Financial Reporting Act 2015 (FRA) was enacted in 2015. But the Financial Reporting Council (FRC) under the FRA is
yet to be formed which is to issue financial reporting standards for public interest entities such as banks. The Bank Company
Act 1991 has been amended to require banks to prepare their financial statements under such financial reporting standards.
The FRC is yet to be formed and as such no financial reporting standards have been issued as per the provisions of the FRA. Hence,
the consolidated financial statements of the Bank and its subsidiaries and the separate financial statements of the Bank as at and for
the year ended 31 December 2016 have been prepared in accordance with Bangladesh Financial Reporting Standards (BFRSs) and the
requirements of the Bank Company Act 1991, the rules and regulations issued by Bangladesh Bank (BB), the Companies Act 1994, the
Securities and Exchange Rules 1987. In case any requirement of the Bank Company Act 1991 and provisions and circulars issued by BB
differ with those of BFRSs, the requirements of the Bank Company Act 1991 and provisions and circulars issued by BB shall prevail.
Material departures from the requirements of BFRS are as follows:
i) Presentation of financial statements

BFRSs: As per BAS 1 financial statements shall comprise statement of financial position, comprehensive income statement, changes in equity,
cash flows statement, adequate notes comprising summary of accounting policies and other explanatory information. As per para 60 of BAS
1, the entity shall also present current and non-current assets and liabilities as separate classifications in its statement of financial position.
Bangladesh Bank: The presentation of the financial statements in prescribed format (i.e. balance sheet, profit and loss account, cash flows
statement, statement of changes in equity, liquidity statement) and certain disclosures therein are guided by the “First Schedule” (section
38) of the Bank Company Act 1991 (amendment up to 2013) and BRPD circular no. 14 dated 25 June 2003 and subsequent guidelines of
BB. In the prescribed format there is no option to present assets and liabilities under current and non-current classifications.
ii) Investments in shares, mutual funds and other securities

BFRSs: As per requirements of BAS 39, investments in shares and securities generally fall either under ‘at fair value through Profit and
Loss Account’ or under ‘available for sale’ account where any change in the fair value at the year-end is taken to profit and loss account or
revaluation reserve account respectively.
Bangladesh Bank: As per BRPD circular no. 14 dated 25 June 2003 investments in quoted and unquoted shares are revalued on the
bases of year-end market price and Net Assets Value (NAV) of last audited balance sheet respectively. As per instruction of another DOS
circular letter no. 3 dated 12 March 2015, investment in mutual fund (closed-end) is revalued at lower of cost and (higher of market value
and 85% of NAV). As such, provision is made for any loss arising from diminution in value of investments (portfolio basis); otherwise
investments are recognised at costs.
The Bank reviews its investment in shares & MFs at each quarter end and took provision of Tk. 79.97 million as of 2016 as per BB
guidelines (note 13.8).
iii) Revaluation gain/loss on Government securities

BFRSs: As per requirement of BAS 39, T-bills and T-bonds are to be categorised as ‘Held For Trading (HFT)’ and ‘Held To Maturity
(HTM)’ where any change in the fair value of HFT securities is recognised in profit and loss account, and amortised cost method is
applied for HTM securities using an effective interest rate.
Bangladesh Bank: According to DOS circular no. 5 dated 26 May 2008 and subsequent clarification in DOS circular no. 5 dated 28
January 2009, amortisation loss is charged to profit and loss account, mark-to-market loss on revaluation of government securities
(T-bills/T-bonds) categorised as HFT is charged to profit and loss account, but any unrealised gain on such revaluation is recognised
to revaluation reserve account. T-bills/T-bonds designated as HTM are measured at amortised cost method but interest income/gain is
recognised through equity.
The Bank recognised revaluation loss of Tk. 222 million and amortisation loss of Tk. 83 million in profit and loss account in 2016 against
its investment in government treasury securities catagorised as HFT and HTM respectively. Unrealised gain of Tk. 12 million arising
from revaluation of HFT securities and Tk. 6 million arising from amortisation gain have been booked in equity as reserve in compliance
with BB guidelines (note 19 & 20).
iv) Provision on loans and advances

BFRSs: As per BAS 39 an entity should undertake impairment assessment when objective evidence of impairment exists for financial
assets that are individually significant. For financial assets which are not individually significant, the assessment can be performed on an
individual or collective (portfolio) basis.
Bangladesh Bank: As per BRPD circular no. 14 dated 23 September 2012, BRPD circular no. 19 dated 27 December 2012, BRPD circular
no. 16 dated 18 November 2014 and BRPD circular no. 8 dated 2 August 2015, a general provision @ 0.25% to 5% under different
categories of unclassified loans (standard/SMA loans) should be maintained regardless of objective evidence of impairment. And specific
provision for sub-standard/doubtful/bad-loss loans should be made at 20%, 50% and 100% respectively on loans net off eligible securities
(if any). Also, a general provision @ 1% should be provided for off-balance sheet exposures. Such provision policies are not specifically
in line with those prescribed by BAS 39.
The Bank charged to its profit & loss account a general provision of Tk. 385 million (Tk. 284 million against unclassified loans & advances,
and Tk. 101 million for off-balance sheet exposures) in 2016 (note 13.4.1).
v) Other comprehensive income and appropriation of profit

BFRSs: As per BAS 1 Other Comprehensive Income (OCI) is a component of financial statements or the elements of OCI are to be
included in a single Other Comprehensive Income (OCI) statement.
BFRSs do not require appropriation of profit to be shown on the face of the statement of comprehensive income.
Bangladesh Bank: The templates of financial statements issued by BB do not include other comprehensive income nor are the elements
of other comprehensive income allowed to be included in a single Other Comprehensive Income (OCI) Statement. As such the Bank
does not prepare the other comprehensive income statement. However, elements of OCI, if any, are shown in the statements of changes
in equity.
Furthermore, the above templates require disclosure of appropriation of profit on the face of profit and loss account.
vi) Financial instruments - presentation and disclosure
As per BB guidelines, in certain cases financial instruments are categorised, recognised, measured and presented differently from those
prescribed in BAS 39. As such some disclosures and presentation requirements of BFRS 7 and BAS 32 cannot be made in these financial
statements.
vii) REPO transactions

BFRSs: When an entity sells a financial asset and simultaneously enters into an agreement to repurchase the same (or a similar asset) at a
fixed price on a future date (REPO or stock lending), the arrangement is accounted for as a collateralised borrowing and the underlying
asset continues to be recognised in the entity’s financial statements. This transaction will be treated as borrowing and the difference
between selling price and repurchase price will be treated as interest expense.
Bangladesh Bank: As per BB circulars/guidelines, when a bank sells a financial asset and simultaneously enters into an agreement to
repurchase the same (or a similar asset) at a fixed price on a future date (REPO or stock lending), the arrangement is accounted for as a
normal sale transaction and the financial assets should be derecognised in the seller’s book and recognised in the buyer’s book.
viii) Financial guarantees

BFRSs: As per BAS 39, financial guarantees are contracts that require an entity to make specified payments to reimburse the holder for
a loss it incurs because a specified debtor fails to make payment when due in accordance with the terms of the instrument. Financial
guarantee liabilities are recognised initially at their fair value and is amortised over the life of the instrument. Any such liability is
subsequently carried at the higher of this amortised amount and the present value of any expected payment when a payment under the
guarantee has become probable. Financial guarantees are prescribed to be included within other liabilities.
Bangladesh Bank: As per BRPD circular no. 14 dated 25 June 2003, financial guarantees such as LC & LG should be treated as off-balance
sheet items. No liability is recognised for the guarantee except the cash margin.
ix) Cash and cash equivalents

BFRSs: Cash and cash equivalent items should be reported as cash item as per BAS 7.
Bangladesh Bank: Some highly liquid assets such as money at call and short notice, T-bills/T-bonds, prize bonds are not prescribed to
be shown as cash and cash equivalents rather shown as face item in the balance sheet. However, in the cash flow statement, money at call
and short notice and prize bonds are shown as cash and cash equivalents beside cash in hand, balance with BB and other banks.
x) Non-banking assets
BFRSs: No indication of non-banking assets is found in any BFRSs.
Bangladesh Bank: As per BRPD circular no.14 dated 25 June 2003, there exists a face item named non-banking assets.
xi) Cash flows statement

BFRSs: Cash flows statement can be prepared either in direct method or indirect method. The presentation method is selected to present
cash flows information in a manner that is most suitable for the business or industry. Whichever method selected should be applied
consistently.
Bangladesh Bank: As per BRPD circular no. 14 dated 25 June 2003, cash flow statement is to be prepared following a mixture of direct
and indirect method.
xii) Balance with Bangladesh Bank (cash reserve requirement)

BFRSs: Balance with Bangladesh Bank should be treated as other assets as it is not available for use in day to day operations as per BAS 7.
Bangladesh Bank: Balance with Bangladesh Bank should be treated as cash and cash equivalents.
xiii) Off balance sheet items

BFRSs: No concept of off balance sheet items in any BFRS; so nothing to disclose as off-balance sheet items.
Bangladesh Bank: As per BRPD circular no.14 dated 25 June 2003, off-balance sheet items i.e. LC, LG, acceptance should be disclosed
separately on the face of the balance sheet.
xiv) Loans and advance net of provision

BFRSs: Loans and advances should be presented net of provisions.
Bangladesh Bank: As per BRPD circular 14 dated 25 June 2003, provision on loans and advances should be presented separately as
liability and cannot be netted off against loans and advances.
*Please refer to note 2B compliance of Bangladesh Accounting Standards (BASs) and Bangladesh Financial Reporting Standards (BFRSs)
for further details.
xv) Recognition of interest in suspense
BFRS: Loans and advances to customers are generally classified as ‘loans and receivables’ as per BAS 39 and interest income is recognised
through effective interest rate method over the term of the loan. Once a loan is impaired, interest income is recognised in profit and loss
account on the same basis based on revised carrying amount.
Bangladesh Bank: As per BRPD circular no. 14 dated 23 September 2012, once a loan is classified, interest on such loans are not allowed
to be recognised as income, rather the corresponding amount needs to be credited to an interest in suspense account, which is presented
as liability in the balance sheet.
xvi) Presentation of intangible asset
BFRS: An intangible asset must be identified and recognised, and the disclosure must be given as per BAS 38.
Bangladesh Bank: There is no regulation for intangible assets in BRPD circular no. 14 dated 25 June 2003.
2.2 Basis of measurement

The consolidated financial statements of the Group and the separate financial statements of the Bank have been prepared on the historical
cost basis except for the following material items:
- Government treasury bills and bonds designated as ‘Held for Trading (HFT)’ are marked-to-market weekly with resulting gain
credited to revaluation reserve account but loss charged to profit and loss account.
- Government treasury bills and bonds designated as ‘Held to Maturity (HTM)’ are amortised yearly with resulting gain credited to
amortisation reserve account but loss charged to profit and loss account.
- Land is recognised at cost at the time of acquisition and subsequently measured at fair value as per BAS 16 ‘Property, Plant &
Equipment’ and BSEC notification no. SEC/CMRRCD/2009-193/150/Admin/51 dated 18 August 2013.
2.3 Going Concern Basis of Accounting

These financial statements have been prepared on the assessment of the Bank’s ability to continue as a going concern. EBL has neither
any intention nor any legal or regulatory compulsion to liquidate or curtail materially the scale of any of its operations. The key financial
parameters (including liquidity, profitability, asset quality, provision sufficiency and capital adequacy) of the Bank continued to exhibit a
healthy trend for couple of years. The rating outlook of the Bank as denoted by both the rating agencies (CRISL and Moody’s) is ‘stable’.
Besides, the management is not aware of any material uncertainties that may cast significant doubt upon the Bank’s ability to continue
as a going concern.
2.4 Use of estimates and judgments

The preparation of the consolidated financial statements of the Group and the separate financial statements of the Bank in conformity
with BFRSs require management to make judgments, estimates and assumptions that affect the application of accounting policies and the
reported amount of assets, liabilities, income and expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period
in which the estimate is revised and in any future period affected.
Key estimates include the following:
- Loan loss provision
- Revaluation of land
- Deferred tax assets/liabilities
- Gratuity & superannuation fund
- Useful lives of depreciable assets
2.5 Foreign currency transactions and translations

Functional and presentation currency
The financial statements of the Group and the Bank are presented in Bangladesh Taka (BDT) which is the functional currency of the
parent, except OBU and EBL Finance (HK) Ltd. where functional currency is US Dollar (USD) and Hong Kong Dollar (HKD) respectively.
All financial information presented in Taka has been rounded off to the nearest integer, except when otherwise indicated.
Conversion of foreign currency transactions
Foreign currency transactions of the Bank and its subsidiaries are converted into respective functional currencies (Bangladesh Taka in
case of EBL main operations, US Dollar in case of OBU and HKD in case of EBL Finance (HK) Limited) at the rate of exchange ruling on
the day of transactions. Monetary assets and liabilities denominated in foreign currencies are retranslated to the functional currency at
standard mid-rate of exchange ruling at the reporting date. Effects of exchange rate differences (rates at which transactions were initially
recorded and the rate prevailing on the reporting date/date of settlements) applied on the monetary assets or liabilities of the Bank are
recorded in the profit and loss account as per BAS 21 ‘The Effect of Changes in Foreign Exchange Rates’.
Translation of foreign currency financial statements
Assets and liabilities of OBU and EBL Finance (HK) Limited have been translated into Taka (functional currency of the Bank) using
year-end standard mid-rate of exchange (i.e. the closing rate) whereas income and expenses are translated using monthly average rate of
standard mid-rates of exchange of the Bank. The cumulative amount of net exchange rate differences has been presented separately as a
component of equity as per BAS 21.
2.6 Basis of consolidation

- Subsidiaries (investees) are entities controlled by the parent (the Bank). Control exists when the Bank has the power over the subsidiaries
that gives right to direct relevant activities, exposure, or rights, to variable returns from its involvement with the subsidiaries, and the
ability to use its power over the subsidiaries to affect the amount of the Bank’s returns.
- The consolidated financial statements incorporate the financial statements of the Bank and its subsidiary companies from the date
that control commences until the date that control ceases. The financial statements of such subsidiary companies are incorporated on
a line by line basis and the investments held by the parent (the Bank) are eliminated against the corresponding share capital of group
entities (subsidiaries) in the consolidated financial statements.
- Financial assets and liabilities are offset and the net amount reported in the consolidated financial statements only when there is
legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or to realise the asset
and settle the liability simultaneously. Items are not offset in the consolidated financial statements unless required or permitted by
accounting standards and regulators.
- Intra-group balances and transactions, and any unrealised income and expenses arising from intra-group transactions are eliminated
in preparing the consolidated financial statements. Unrealised losses are eliminated in the same way as unrealised gains, but only to
the extent that there is no evidence of impairment.
Loss of control
Upon loss of control of a subsidiary the group derecognises the assets (including any goodwill) and liabilities of the subsidiary at carrying
amount, any non controlling interests and the other components of equity related to the subsidiary. Any surplus or deficit arising on the
loss of control is recognised in profit and loss account. If the group retains any interest in the former/previous/ex-subsidiary, then such
interest is measured at fair value at the date that the control is lost. However, the group has neither lost control nor derecognised any asset
or liability of any of its subsidiaries in the reporting period.
2.7 Cash flows statement

Cash flows statement has been prepared in accordance with BAS 7 ‘Statement of Cash Flows’ and under the guideline of BB BRPD
circular no. 14 dated 25 June 2003. The statement shows the structure of changes in cash and cash equivalents during the financial year.
2.8 Reporting period

These financial statements of the Group, the Bank and its subsidiaries, cover one calendar year from 1 January to 31 December.
2.9 Liquidity statement

The liquidity statement has been prepared mainly on the basis of remaining maturity grouping of assets and liabilities as at the close of
the year as per following bases:
Particulars Basis of Use
Cash, balance with other banks and financial

Stated maturity/observed behavioral trend.
institutions, money at call and short notice, etc.
Investments Residual maturity term.
Loans and advances Repayment/maturity schedule and behavioral trend (non-maturity products).
Fixed assets Useful life.
Other assets Realization/amortization basis.
Borrowings from other banks and financial institutions Maturity/repayment term.
Deposits and other accounts Maturity and behavioral trend (non-maturity products).
Other long term liability Maturity term.
Provision and other liability Settlement/adjustment schedule basis.
2.10 Significant accounting policies

The accounting policies set out below have been applied consistently to all periods presented in these financial statements, and have been
applied consistently by group entities except otherwise instructed by Bangladesh Bank as the prime regulator.
Accounting policies of subsidiaries
The financial statements of subsidiaries which are included in the consolidated financial statements of the Group have been prepared using
uniform accounting policies of the Bank (Parent) for transactions and other events of similar nature. There is no significant restriction on
the ability of subsidiaries to transfer funds to the parent in the form of cash dividends or to repay loans and advances. All subsidiaries of
the Bank have been incorporated in Bangladesh except for EBL Finance (HK) Limited which is incorporated in Hong Kong.
A. Assets and basis of their valuation
i) Cash and cash equivalents
Cash and cash equivalents include notes and coins in hand and at ATM, unrestricted balances held with BB and its agent bank, balance
with other banks and financial institutions, money at call and on short notice and prize bonds which are not ordinarily susceptible to
change in value.
ii) Investments
All investments (other than government treasury securities) are initially recognised at cost, including acquisition charges associated
with the investment. Accounting treatment of government treasury securities (categorised as HFT or/and HTM) is given following DOS
circular no. 5 dated 26 May 2008 and subsequent clarifications on 28 January 2009.
Held to Maturity (HTM)
Investments which are intended to be held till maturity are classified as Held to Maturity (HTM). These are measured at amortised cost
at each year-end by taking into account any discount or premium on acquisition. Premiums are amortised and discounts are accredited,
using the effective or historical yield. Any increase in value of such investments is booked to equity but decrease to profit and loss account.
Held for Trading (HFT)
These are investments primarily held for selling or trading. After initial recognition, investments are marked to market weekly and any
decrease in the present value is recognized in the Profit and Loss Account and any increase is booked to Revaluation Reserve Account
through Profit and Loss Account as per DOS Circular no. 05 dated 28 January 2009.
REPO and reverse REPO
The Bank has been recording transactions of REPO and reverse REPO following DOS circular no. 6 dated 15 July 2010 of BB. In case
of REPO of both coupon and non-coupon bearing (treasury bill) securities, the Bank adjusts the revaluation reserve account for HFT
securities and stops the weekly revaluation (if the revaluation date falls within the REPO period) of the same security. For interest bearing
security, the Bank does not accrue interest during REPO period.
Investments – Initial recognition and subsequent measurement at a glance
Investments are stated as per following bases:
Initial Measurement after initial
Investment class Recording of changes
recognition recognition
Govt. T-bills/T-bonds-Held for Cost Fair value Loss to Profit and Loss Account, gain to
Trading (HFT) Revaluation Reserve through Profit and Loss
Account.
Govt. T-bills/T-bonds-Held to Cost Amortised cost Increase in value of such investments is booked
Maturity (HTM) to equity, decrease to profit and loss account.
Debenture/Bond Face value None None
Shares (Quoted) * Cost Lower of cost or market value Loss (net off gain) to profit and loss account but
(overall portfolio) no unrealised gain booking.
Shares (Unquoted)* Cost Lower of cost or Net Asset Loss to profit and loss account but no unrealised
Value (NAV) gain booking.
Mutual fund (Closed-end) * Cost Lower of cost and (higher of Loss (net) to profit and loss account but no
market value and 85% of NAV) unrealised gain booking.
Prize bond Cost Cost None
* Provision for shares against unrealised loss (gain net off) has been made as per DOS circular no. 4 dated 24 November 2011 and for mutual
funds (closed-end) as per DOS circular letter no. 3 dated 12 March 2015 of Bangladesh Bank.
Investment in Subsidiaries
Investment in subsidiaries are accounted for under the cost method of accounting in the Bank’s financial statements in accordance with
BAS 27 ‘Consolidated and Separate Financial Statements’ and BFRS 3 ‘Business Combination’. Impairment of investment in subsidiaries
is made as per the provision of BAS 36 ‘Impairment of Assets’.
iii) Loans, advances and provisions
Loans and advances comprise of non-derivative financial assets with fixed or determinable payments and are not quoted in an active
market. These are recognised at gross amount on the date on which they are originated. The group has not designated any ‘loans and
advances’ upon initial recognition as at fair value through profit and loss account or available-for-sale.
After initial recognition, ‘loans, advances and receivables’ are subsequently measured at amortised cost using effective interest rate (EIR)
over the relevant periods. The amortised cost of a financial asset is the amount at which the asset is measured at initial recognition less
principal repayments, using EIR method. The EIR is the rate that exactly discounts estimated future cash receipts (estimates cash flows
considering all contractual terms of the instrument but not future credit losses) during the expected life of the financial instrument.
Provision:
General provisions @ 0.25% to 5% under different categories on unclassified loans (standard/SMA) and @ 1% on off-balance sheet exposures,
and specific provisions @ 20%, 50% & 100% on classified (substandard/doubtful/bad-loss) loans are made on the basis of quarter-end review by
the management and instructions contained in BRPD circular no.14 dated 23 September 2012, BRPD circular no. 19 dated 27 December 2012,
BRPD circular no. 16 dated 18 November 2014 and and BRPD circular no. 8 dated 2 August 2015. Provisions and interest suspense are separately
shown under other liabilities as per First Schedule of the Bank Company Act 1991 (amendment upto 2013), instead of netting off with loans.
Heads Rates
General provision on:
Unclassified (including SMA) general loans and advances 1%
Unclassified (including SMA) small and medium enterprise 0.25%
Unclassified (including SMA) Loans to BHs/MBs/SDs against shares etc. 2%
Unclassified (including SMA) loans for housing finance and on loans for professionals 2%
Unclassified consumer financing other than housing finance and loans for professionals 5%
Short term agri credit and micro credit 2.5%
Off-balance sheet exposures 1%
Specific provision on:
Substandard loans and advances other than short term agri credit and micro credit 20%
Doubtful loans and advances other than short term agri credit and micro credit 50%
Bad/Loss loans and advances 100%
Substandard & Doubtful short term agri credit and micro credit 5%
Bad/Loss short term agri credit and micro credit 100%
iv) Fixed assets
The group applies the accounting requirements of BAS 16 ‘Property, Plant and Equipment’ for its own assets (including finance lease
where the bank is lessee) which are held for existing and future use in the business or other administrative purposes and are expected to
be used for more than one year.
Recognition and measurement
Fixed assets except land are stated at cost less accumulated depreciation as per BAS 16. Land is recognised at cost at the time of acquisition
and subsequently measured at revalued amounts which are the fair value at the time of revaluation done by independent valuer and any
surplus on revaluation is shown as equity component until the asset is disposed.
The cost of an item of fixed assets is recognised as an asset if it is probable that future economic benefits associated with the item will flow
to the entity, and the cost of the item can be measured reliably.
The cost of an item of fixed assets comprises:
- its purchase price, including import duties and non-refundable purchase taxes, after deducting trade discounts and rebates.
- any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the
manner intended by management.
- the initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located.
Subsequent costs
Subsequent costs are capitalised only when it is probable that the future economic benefits associated with the costs will flow to the entity
and cost can be measured reliably. The carrying amount of the replaced portion is derecognised. The costs of day to day servicing of fixed
assets, i.e. repairs and maintenance is charged to profit and loss account as expense when incurred.
Depreciation
Depreciation is charged at the rates stated below on all the items of fixed assets on the basis of estimated useful lives as determined in the
fixed asset policy of the Bank. In all cases depreciation is calculated on the straight line method. Charging depreciation commences from
the month of acquisition (for full month) and ceases at the month when the assets are disposed. No depreciation is charged on building
under construction until the usage of the assets.
The rates and useful lives at which fixed assets are depreciated/amortised for current and comparative years are given below:
Category Estimated useful lives (Years) Rate of depreciation/ amortisation
Buildings 40 2.50%
Furniture and Fixtures 10 10.00%
Machineries and equipment 5 20.00%
Computers 3 33.33%
Stabilisers and UPS 3 33.33%
Vehicles 5 20.00%
Software 5 20.00%
Repairs and maintenance are charged to profit and loss account as expense when incurred.
Capital work in progress/building under construction
Building under construction is recognised and reported under fixed assets as per BAS 16 as capital work in progress until the construction
work is completed and the asset is ready for intended use. This asset is stated at cost and depreciation of the asset will be charged from the
date when it is available for use.
Derecognition of fixed assets
The carrying amount of an item of fixed assets is derecognised on disposal or when no future economic benefits are expected from its
use or disposal. The gain or loss arising from derecognition of an item of fixed assets is to be recorded in profit or loss when the item is
derecognised.
Details of fixed assets are presented in note 8 and ‘Annexure-A’ of these financial statements.
v) Leased Assets
Fixed assets which are procured under finance lease arrangement (under which substantially all the risks and rewards incidental to
ownership are transferred to the lessees i.e. EBL) are reported as leased assets as per BAS 17 ‘Leases’.
Assets held under finance lease are recognised as assets of the Bank at an amount equal to lower of their fair value and the present value
of minimum lease payments. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation. Any
initial direct costs incurred are added to the amount recognised as leased asset.
vi) Intangible assets
Intangible asset is an identifiable non-monetary asset without physical substance. The Group classifies its intangible assets as per BAS
38 ‘Intangible Assets’ which comprises the value of all licensed computer software including core banking software of the Bank, cards
management software, cheque processing software (i.e. BEFTN), software of subsidiaries and other integrated customised software for
call center, ATM service, HR & Finance division, etc.
Recognition, subsequent expenditure and measurement
The Group recognises an intangible asset if it is probable that future economic benefits that are attributable to the assets will flow to the
entity and the cost of the asset can be measured reliably in accordance with BAS 38 ‘Intangible Assets’. The Group does not have any
intangible assets with indefinite useful lives.
Subsequent expenditure on intangible asset of the Group is capitalised only when it increases the future economic benefits embodied in
the specific assets to which it relates otherwise is charged as expense when incurred.
Intangible assets are derecognised on disposal or when no future economic benefits are expected from their use. Gain or loss arising
from derecognition of an intangible asset is measured as the difference between the net disposal proceed and the carrying amount of that
intangible asset and are recognised in profit and loss account.
Core banking software of EBL
The core banking software used by EBL (not by subsidiaries) represents the value of application software licensed for the use of the Bank.
The value of the software is carried at cost less accumulated amortisation. Initial cost comprises license fees paid at the time of purchase
and other directly attributable costs incurred for customising the software for its intended use. The value of the software is amortised
using the straight line method over the estimated useful life of 5 (five) years commencing from the month at which the application of the
software is made available for use.
vii) Other assets
As per BRPD circular no. 14 dated 25 June 2003, other assets/item(s) have been shown separately as ‘income generating’ and ‘non-income
generating’ in the relevant notes to the financial statements. Other assets include investment in subsidiaries, TREC of DSE & CSE, advance
for revenue and capital expenditure, stocks of stationary and stamps, security deposits to government agencies, other receivables etc.
viii) Non banking assets
Non-banking assets were acquired due to failure of borrowers to repay the loan in time taken against mortgaged property. the Bank was
awarded absolute ownership on few mortgaged properties (mostly land) through the verdict of the honourable court under section 33
(7) of the Artharin Adalat Act 2003. The value of the properties has been recognised in the financial statements as non-earning assets on
the basis of third party valuation report. Value of the assets received in addition to the loan outstanding has been kept as reserve against
non-banking assets. Party wise details (including possession date) of the properties are separately presented in note 10.
ix) Impairment of assets
An asset is impaired when its carrying value exceeds its recoverable amount as per BAS 36 ‘Impairment of Assets’. At the end of each
reporting period the Bank and its subsidiaries review the carrying value of financial and non-financial assets (other than investment in
subsidiaries) and assess whether there is any indication that an asset may be impaired and/or whenever events or changes in circumstances
indicate that the carrying value of the asset may not be recovered. If any such indication exists, the Bank and the subsidiaries make an
estimate of the recoverable amount of the asset. The carrying value of the asset is reduced to its recoverable amount, if the recoverable
amount is less than its carrying amount and impairment losses are recognised in the profit and loss account. However, impairment of any
assets are guided by the relevant BB circulars/instructions and BAS 39.
B. Liabilities and provisions

Borrowings from other banks, financial institutions and agents
Borrowings from other banks, financial institutions and agents include interest bearing borrowings which are stated in the financial
statements at principal amount of the outstanding balance. Interest payables on such borrowings are reported under other liabilities.
i) Debt securities (Subordinated debt)
The Bank issued a 7-year non-convertible floating rate subordinated debt mainly to increase Tier-2 capital having received required
approval from Bangladesh Bank & BSEC. Principal amount outstanding against the debt is reported under long term borrowing and
interest payable of which is reported under other liabilities. Details of subordinated debt is given in note 11.1.a of the financial statements.
ii) Deposits and other accounts
Deposits and other accounts include non-interest bearing current deposits redeemable at call, interest bearing short-term deposits,
savings deposits and fixed deposits which are initially measured at the consideration received. These items are subsequently measured
and accounted for at the gross value of the outstanding balance in accordance with the contractual agreements with the counterparties.
iii) Other liabilities
Other liabilities comprise items such as provision for loans and advances/investments, provision for taxes, interest payable on borrowing,
interest suspense and accrued expenses etc. Individual item-wise liabilities are recognised as per the guidelines of Bangladesh Bank and
Bangladesh Financial Reporting Standards (BFRS).
iv) Dividend payments
Interim dividend of the Group is recognised only when the shareholders’ right to receive payment is established. Final dividend is
recognised when it is approved by the shareholders in AGM. However, the proposed dividend for the year 2016 has not been recognised as
a liability in the balance sheet in accordance with BAS 10 Events after the Reporting Period. Dividend payable to the Bank’s shareholders
is recognised as a liability and deducted from the shareholders’ equity in the period in which the shareholders’ right to receive payment
is established.
v) Provision for loans and advances
Provision for classified loans and advances is made on the basis of quarter-end review by the management and instructions contained
in BRPD circular no. 14 dated 23 September 2012, BRPD circular no. 19 dated 27 December 2012 and BRPD circular no. 16 dated 18
November 2014. Details are stated in Note 13.4 of these financial statements.
vi) Provision against investment in Capital Market
Provision for diminution of value of quoted shares and mutual funds (closed-end), placed under other liability, has been made on
portfolio basis (gain net off) following DOS circular No. 04 dated 24 November 2011 and DOS circular letter no. 03 dated 12 March 2015
respectively. For unquoted shares, provision has been made based on available NAV of respective nos of units. As on the reporting date,
the Bank does not hold any open-end mutual fund. Details are stated in Note 13.8 of these financial statements
vii) Provision for off-balance sheet exposures
In compliance with BRPD circular no. 14 dated 23 September 2012 and related earlier circulars, the Bank has been maintaining provision
@ 1% against off-balance sheet exposures (mainly contingent assets/liabilities).
viii) Provision for other assets
Provision for other assets is made as per the instructions made in the BRPD circular No. 14 dated 25 June 2001 i.e. 100% provision is
required on other assets which are outstanding for one year or more or classified as bad/loss.
ix) Provision for nostro accounts
Provision for unsettled transactions in nostro accounts is made as per FEPD circular no. FEPD (FEMO) / 01/2005-677 dated 13
September 2005 of Foreign Exchange Policy Department (FEPD) of Bangladesh Bank. On the reporting date, the Bank has no unsettled
transactions outstanding for more than 3 months and no provision has been made in this regard.
x) Provision for liabilities and accrued expenses
In compliance with BAS 37, provisions for other liabilities and accrued expenses are recognised in the financial statements when the
Bank has a legal or constructive obligation as a result of past event, it is probable that an outflow of economic benefit will be required to
settle the obligation and a reliable estimate can be made of the amount of the obligation.
xi) Retirement/post-employment benefits
The Bank contributes to a defined contribution plan (Provident Fund) and two defined benefit plans (gratuity fund and superannuation
fund) in compliance with the provisions of BAS 19 ‘Employee Benefits’. Two subsidiaries i.e. EBLSL & EBLIL of the Bank have been
maintaining ‘provident fund’ and ‘gratuity fund’ from March 2015.
Defined contribution plans
Post-employment benefit plans under which rate of contributions into the plan is fixed. Any payment out of the plan to eligible outgoing
members is based on the size of the ‘fund’ that comprises cumulative contributions made into the scheme and investment returns on scheme
assets. The Group maintains one funded defined contribution plan i.e. 'Provident fund' for its employees under single trustee board.
Provident fund
The Bank operates a contributory provident fund (recognised by National Board of Revenue or NBR on 31 July 1997) for its permanent
employees funded by the employees (10% of basic salary) and the Bank equally. the Bank’s contribution is made each month and
recorded under salary and allowances. This fund is managed by a separate trustee board i.e. ‘EBL Employees Provident Fund Trust’ and
any investment decision out of this fund is made separately from that of the Bank’s funds. Subsidiaries (EBLSL & EBLIL) of the Bank also
operate two separate contributory provident funds for its permanent employees funded by both the employees and organisation equally.
Amount charged in profit and loss account as expense on defined contribution plan of the group is given in note 30 of these financial
statements.
Defined benefit plans
Post-employment benefit plans those define the amount that outgoing members will receive from the plans on separation on the bases
of length of service and salary levels.
Contributions are made by the Bank into the scheme based on actuarial valuation. The Bank has an obligation to make up any shortfall
in the plan, thereby bearing the risk of the plan under-performing. The Bank maintains two defined benefit plans i.e. 'Gratuity fund' and
'Superannuation fund' for its employees under two separate trustee boards. Subsidiaries (i.e. EBL SL & EBL IL) of the Bank also maintain
a funded defined benefit plans i.e. 'Gratuity fund' under separate trustee boards from 01 March 2015.
Gratuity fund
The Bank operates a funded gratuity scheme recognised by NBR with effect from 1 January 1997. This fund is managed separately by
‘EBL Employees Gratuity Fund Trust’ and any investment decision out of this fund is also made by this Trust. The benefit is paid on
separation to the eligible employees i.e. who have completed at least 7 (seven) years of continuous service. As per the Bank’s policy,
eligible employees are provided with the benefit equal to the latest monthly basic salary multiplied by applicable rates that varies as per
service length.
Provision for gratuity is made monthly on the basis of actuarial valuation made once in three years, or immediately after any major
change in the salary structure that could impact the periodic amount of contributions. Last actuarial valuation was done based on 30
September 2015. As per this valuation, effective from 1 October 2015, a contribution of 14.90% of basic salary is to be made to the fund
per month until the next actuarial review is carried out. Contribution for the year 2016 has been made @14.90% of basic salary.
Superannuation fund
The Bank operates a recognised superannuation fund effective from 20 November 1999 which is governed by the trust deed of ‘EBL
Employees Superannuation Fund Trust’. As per the trust deed, benefit is payable to the eligible employees of the Bank as per their grade,
length of service etc. Last actuarial valuation of the fund was carried out based on 30 September 2015. As per the valuation, effective from
1 October 2015, Tk 1.49 million is to be contributed to the fund each month until the next actuarial valuation is done. During 2016, Tk.
17.88 million has been contributed into the fund by the Bank.
Details i.e. actuarial liability, valuation method, service cost, required contribution etc. of defined benefit plan and amount recognised in
profit & loss account are stated in note 30 of these financial statements.
Other long-term benefits
The Bank’s obligation in respect of long term benefit other than ‘Gratuity fund’ and ‘Superannuation fund’ is the amount of future
benefits that employees have earned i.e. ‘Earned Leave Encashment’ in return for their service in the current and prior periods. The
nature of this benefit to the eligible employees is encashment of earned leave upto maximum 90 days which is calculated based on last
Basic Salary, House rent and Medical allowance and is paid in cash at the time of paying end service benefit. The Bank recognises earned
leave encashment as expense as an when paid to outgoing employees.
The Group does not have any other long term employee benefit plans.
Short term benefits

Short term employee benefits i.e. group insurance policy, hospitalisation facilities etc. are expensed as the related service is provided
to the eligible employees as per ‘People Management Policy’ of EBL. Liability is recognised only for the amount expected to be paid if
the Group has a present legal or constructive obligation to pay any amount as a result of past service provided by the employee and the
obligation can be estimated reliably.
xii) Contingent liabilities

Contingent liabilities which are possible obligations that arise from past events whose existence will be confirmed only by the occurrence
or non-occurrence of one or more uncertain future events not within the control of the Bank. Contingent liabilities are not recognised
unless the possibility of an outflow of resources embodying economic benefits are reliably estimated. However, disclosure on contingent
liabilities have been made on the face of balance sheet under ‘Off-balance Sheet Items’ as per the guidelines of BRPD circular No. 14
dated 25 June 2003.
C. Share capital and reserves
i) Authorised and issued capital
The authorised capital of the Bank is the maximum amount of share capital that the Bank is authorised by its Memorandum and Articles
of Association to issue (allocate) among shareholders. This amount can be changed by shareholders’ approval upon fulfilment of relevant
provisions of the Companies Act 1994. Part of the authorised capital usually remains unissued. The part of the authorised capital already
issued to shareholders is referred to as the issued share capital of the Bank.
ii) Paid-up capital
The paid-up capital represents the amount of bank’s capital that has been contributed by ordinary shareholders. The holders of ordinary
shares are entitled to receive dividend as recommended by the Board and subsequently approved by the shareholders from time to time
in the Annual General Meeting (AGM).
iii) Share premium
The Share premium represents the excess amount received by the Bank from its shareholders over the nominal/par value of its share.
The amount of share premium can be utilised as per the provision of section 57 of the Companies Act 1994. Currently, the Bank does
not have any share premium.
iv) Statutory reserve
In compliance with the provision of section 24 of the Bank Company Act 1991, the Bank is to transfer at least 20% of its profit before tax
(PBT) to ‘statutory reserve’ each year until the sum of statutory reserve and share premium (if any) equal to the paid up capital of the
Bank. In 2016, the Bank transferred Tk. 879.90 million to statutory reserve equivalent to 20% of PBT.
v) Asset revaluation reserve
When an asset’s carrying amount is increased as a result of revaluation, the increased amount after deducting deferred tax liability which
may arise against such revaluation gain as per BAS 12 ‘Income Tax’, is credited directly to equity under the heading of assets revaluation
reserve as per BAS 16 ‘Property, Plant and Equipment. Apart from financial assets, the Bank revalues its lands following relevant circulars
of Bangladesh Bank and BSEC.
vi) Reserve for amortization/ revaluation of securities
When the value of a government treasury security categorised as HTM increases as a result of amortisation, the amount thus increased
is recognised directly to equity as ‘reserve for amortisation’. However, any increase in the value of such securities categorised as HFT as a
result of ‘mark to market’ is booked under equity as ‘revaluation reserve’ but any decrease is directly charged to profit and loss account as
per Bangladesh Bank DOS circular letter no. 5 dated 26 May 2008 & DOS Circular letter no. 5 dated 28 January 2009.
D. Revenue recognition
i) Interest income
Interest on unclassified loans and advances is recognised as income on accrual basis, interest on classified loans and advances is credited
to interest suspense account with actual receipt of interest there from credited to income as and when received as per instruction
contained in BRPD circular no. 14 dated 23 September 2012, BRPD circular no. 19 dated 27 December 2012 and BRPD circular no. 16
dated 18 November 2014.
ii) Fees and commission income
Fess and commission income arises from services provided by the Bank and recognised as and when received basis. Commission charged
to customers on letters of credit, letters of guarantee and acceptance are credited to income at the time of effecting the transactions
except those which are received in advance.
iii) Interest income from investments
Interest income on investments in government and other securities, debentures and bonds is accounted for on accrual basis.
iv) Foreign exchange gain/ loss
Exchange income includes all gain and losses from foreign currency day to day transactions, conversions and revaluation of non
monetary items.
v) Dividend income
Dividend income from investments is recognised at the time when it is declared, ascertained and right to receive the payment is
established as per BAS 18 ‘Revenue’.
vi) Interest paid on borrowings and deposits
Interest paid on borrowings and deposits are calculated on 360 days basis (except for some treasury instruments which are calculated on
364 days basis) in a year and recognised on accrual basis.
vii) Management and other expenses
Expenses incurred by the Bank are recognised on actual and accrual basis.
viii) Taxation
The expense comprises current and deferred tax. Current tax and deferred tax is recognised in profit or loss except to the extent that it
relates to a business combination or items recognised directly in equity.
a. Current tax
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantially enacted at the reporting
date and any adjustment to the tax payable in respect of previous years.
Provision for current income tax of the Bank has been made on taxable income @ 40% considering major disallowances of expenses
and concessional rates on certain incomes (0% on gain on trading of govt. securities, 10% on capital gain of shares & MFs and 20%
on dividend income) as per Income Tax Ordinance (ITO) 1984. Tax provision of the Group entities is made on taxable income of
subsidiaries at different rates applicable as per the ITO 1984 and the tax authority of the country where it is incorporated.
b. Deferred tax
Deferred tax assets or liabilities are recognised by the Bank on deductible or taxable temporary differences between the carrying amount
of assets and liabilities used for financial reporting and the amount used for taxation purpose as required by BAS 12 ‘Income Taxes’ and
BRPD circular no.11 dated 12 December 2011. Deferred tax assets is recognised for the carry forward of unused tax losses and unused
tax credits to the extent that it is probable that future taxable profit will be available against which they can be used. Deferred tax assets
and liabilities are reviewed at each reporting period and are measured at the applicable tax rate as per tax laws that are expected to
be applied when the assets is realised and liability is settled. Any unrecognised deferred tax assets or liabilities are reassessed at each
reporting period and recognised only if that has become probable that future taxable profit or loss will be available against which they
can be used or settled.
In reality, buyers bear the tax on behalf of sellers at the time of land registration and taxes paid at the time of land registration are final discharge
of related tax liability of the seller (bank). Hence, no deferred tax liability has been recognised on land revaluation reserve of the bank.
Details of deferred tax assets or liabilities and amount recognised in profit and loss account for deferred tax income or expense are given
in note 9.12 in the financial statements.
E. Others
i) Materiality and aggregation
Each material class of similar items has been presented separately in the financial statements. Items of dissimilar nature also have been
presented separately unless they are immaterial in accordance with BAS 1 ‘Presentation of Financial Statements’.
ii) Offsetting
Financial assets and liabilities are offset and the net amount is presented in the balance sheet when there is a legally enforceable right to
offset the recognised amounts and there is an intention to settle on a net basis, or realize the asset and settle the liability simultaneously.
Advance tax paid and provision for tax of the Bank is presented on net basis as a liability item if the liability is higher than asset and as an
asset item if the asset is higher than liability. Card revenues and expenses only those are earned and incurred on shared basis and directly
attributable are presented on net off basis i.e interchange reimbursement (IRF) & acquiring fees, risk assurance premium & merchant
service commission. However, details breakup of cards revenue & expense are given in note 28.1.a.
iii) Comparative information
Comparative information including narrative and descriptive one is disclosed in respect of the preceding period where it is relevant to
enhance the understanding of the current period’s financial statements.
Certain comparative amounts in the financial statements are reclassified and rearranged where relevant, to conform to the current year’s presentation.
iv) Earnings per share (EPS)
As per BAS 33 ‘Earnings per Share’ the Bank has been reporting ‘Basic EPS’ as there has been no dilution possibilities during the year.
Basic EPS is computed by dividing the profit or loss attributable to ordinary shareholders of the Bank by the number of ordinary shares
outstanding during the period. Bonus shares issued in current period are considered for number of ordinary shares outstanding for
preceding period to present comparative EPS with retrospective adjustment (restated).
v) Related party transactions
Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant
influence over the other party in making financial and operating decisions. Parties are also considered to be related if they are subject to
common control or common significant influence.
Related party transaction is a transfer of resources, services, or obligations between related parties, regardless of whether a price is
charged as per BAS 24 ‘Related Party Disclosures’, Bangladesh Bank & BSEC guidelines. Details of the related party transactions have
been disclosed in ‘Annexure - C and Annexure - C1’. The Bank carries out business with related parties in the ordinary course of
business on an arm’s length basis at commercial rates except for those transactions that the key management personnel have availed
at concessionary rates which is applicable to all the eligible staffs. The Bank did not have any related party transaction exceeding this
threshold as at the end of 2016.
Transactions between the Bank and its subsidiaries and outstanding amount within the group have been disclosed in ‘Annexure - C1’.
vi) Reconciliation of books and account
Books of account in regard to inter-bank (in Bangladesh and outside Bangladesh) as well as inter-branches are reconciled at regular
intervals to keep the unreconciled balances within non-material level.
vii) Events after the reporting period
All the material events after the reporting period have been considered and appropriate adjustments/disclosures have been made in the
financial statements as per BAS 10 ‘Events after the Reporting Period’. Board’s recommendation for dividend distribution is a common
item presented in the note 45.
viii) Operating segments
The Group has identified following six reportable segments which are the Group’s major strategic business units/entities. The strategic
business units offer different products and services, and are managed separately based on the management and internal reporting
structure of the group. For each of the strategic business units, the Group’s/Bank’s Management Committee reviews internal management
reports on quarterly basis. The following summary describes the operations in each of the reportable segments:
Segment Name Description

Main operations (Onshore Deals with the full range of commercial banking products and services offered by four different
Banking) business units: Corporate, SME, Consumer Banking and Treasury.
Offshore Banking Deals with loans, deposits and other transactions and balances in freely convertible currencies
with eligible Corporate customers.
EBL Securities Limited It buys, sells and deals in shares, debentures and other securities on behalf of customers and does
margin lending etc.
EBL Investments Limited It offers all kinds of merchant banking activities i.e., issue management, underwriting, portfolio
management and other transactions.
EBL Finance (HK) Limited It deals with trade finance and off-shore banking business in Hong Kong.
EBL Asset Management Limited It is to carry out business on asset management, portfolio management, capital market operation,
equity investment, financial services i.e. corporate advisory, merger & acquisition, corporate
restructuring etc.
Information regarding the results of each reportable segment is included in ‘Annexure - E’. Performance is measured based on segment
revenue and profit, as included in the internal management reports that are reviewed by the Management Committee of the Bank.
Segment profit is used to measure performance as management believes that such information is relevant in evaluating the results of
certain segments.
ix) Risk management and other related matters
Financial Institutions are in the business of taking calculative risk and it is important how a bank decides on its risk appetite. EBL firmly
believes that robust risk management is the core function that makes its business sustainable. The risk management systems in place at
the Bank are discussed below:
a) Credit Risk
Credit risk is the risk of loss that may occur from the default of any counterparty to repay in accordance with agreed terms and
conditions and/or deterioration of creditworthiness. Board of Directors is the apex body for credit approval of the Bank. However,
they delegate authority to the Managing Director & CEO or other officers of the Credit Risk Management (CRM) Division. The Board
also sets credit policies to the management for setting procedures, which together has structured the CRM framework in the bank. The
Credit Policy Manual (CPM) contains the core principles for identifying, measuring, approving and managing credit risk in the bank.
The policy covers corporate, retail, Small and Medium Enterprise (SME) exposures. Policies and procedures together have structured
and standardised CRM process both in obligor and portfolio level. There is a comprehensive credit appraisal procedure that covers
industry/business risk, management risk, financial risk, facility structure risk, security risk, environmental risk, reputational risk, and
account performance risk.
Management, at least once in a quarter, reviews credit exposures and portfolio performance of corporate and SME (M) under a clearly
set out ‘early alert’ policy. If early alerts are raised, account plans are then re-evaluated; remedial actions are agreed and monitored.
Remedial action includes, but not limited to exposure reduction, security enhancement, exit of relationship or immediate movement of
our Special Asset Management Division (SAMD).
The bank follows the criteria for loan classification and provisioning requirement as stipulated in the BRPD circular no.14 dated 23
September 2012 and BRPD circular no. 5 dated 29 May 2013. Adequate provision has been kept which is stated in Note 13.4 to the
financial statements.
b) Liquidity Risk
Responsibility of managing and controlling liquidity of the bank lies with Asset Liability Committee (ALCO) that meets at least once in
a month. Asset Liability Management (ALM) desk being primarily responsible for management of liquidity risk closely monitors and
controls liquidity requirements on a daily basis by appropriate coordination of funding activities. A monthly projection of fund flows
is reviewed in ALCO meeting regularly. On monthly basis, ALCO monitors liquidity management by examining key ratios, maximum
cumulative outflow, upcoming funding requirement from all business units, asset-liability mismatch etc.
ALCO also monitors concentration of deposits on large institutional depositors which is volatile in nature. In addition to these ratios,
Bank prepares structural liquidity profile, maturity profile of term deposit, cash flow modelling and contingency funding plan on
monthly basis, which are analysed in ALCO meeting to ensure liquidity at the level acceptable to the bank and regulators.
c) Market Risk
Risk Management Unit (RMU) is responsible for overall monitoring, control and reporting of market risk while treasury mid office
is an integral part of market risk management which independently evaluates and monitors treasury department’s transaction from
risk perspective. Overall risk parameters and exposures of the bank are monitored by RMU and periodically reported to Bank Risk
Management Committee (BRMC). Market risk can be subdivided into three categories depending on risk factors: interest rate risk,
foreign exchange risk, and equity price risk.
d) Interest Rate Risk
Interest rate risk is the risk to earnings or capital of the bank arising from movement of interest rates. The movement of interest rates
affects bank’s reported earnings and capital by changing:
• Net interest income
• The market value of trading accounts (and other instruments accounted for by market value), and
• Other interest sensitive income and expenses.
To manage interest rate risk, ALCO regularly monitors various ratios and parameters. Bank deploys several analysis techniques (e.g.
Rate Sensitive Gap Analysis, Duration Gap Analysis) to measure interest rate risk, its impact on Net Interest Income and takes insight
about course of actions.
e) Foreign Exchange Risk
Foreign exchange risk is the risk that a bank’s financial performance or position will be affected by fluctuations in the exchange rates
between currencies and implied volatility on foreign exchange options. Bank makes import payment and outward remittance as its
outflow, whereas it gets foreign currency inflow as export receipts and inward remittance. Exchange rate risk arises, if, on a particular
day, these inflow-outflows don’t match and bank runs its position long/short from these customer driven activities. Bank also faces
foreign exchange risk if it sources its funding in one currency by converting fund from another currency. Currently, the Bank is facing
such transaction exposure in foreign currency for its off-shore banking unit. But these transactions exposure is always hedged.
The Bank computes VaR (Value at Risk) on its foreign exchange position arising from customer driven foreign exchange transactions at
95% confidence level on daily basis. The Bank maintains various nostro accounts in order to conduct operations in different currencies.
The position maintained by the Bank at the end of the day is within the stipulated limit prescribed by the Bangladesh Bank.
f) Equity Price Risk
Equity price risk is the risk of losses caused by changes in equity prices. These losses could arise because of changes in the value of listed
shares held directly by the bank; changes in the value of listed shares held by a bank subsidiary; changes in the value of listed shares
used as collateral for loans whether the loan was made for the purpose of buying the shares; and changes in the value of unlisted shares.
Mark to Market is the tool bank applies for making full provision against losses arisen from changes in market price of securities. As of
31 December 2016, the Bank sets aside Tk. 79.97 million charging its profit and loss account over the periods to cover unrealised loss
against quoted securities. EBL is also computing Equity VaR (Value at Risk) on its equity exposure at 95% and 99% confidence level.
g) Operational Risk
Operational risk unit under Internal Control & Compliance Division (ICCD) is primarily responsible for risk identification,
measurement, monitoring, control and reporting of operational risk. Internal Control (audit) Unit of ICCD also conducts risk-based
audit at departmental and branch level throughout the year. Besides ‘Bank Risk Management Committee’ (BRMC) which reports to
MD & CEO also plays a supervisory role.
Operational risks are analyzed through review of various control tools like Departmental Control Function Check List (DCFCL),
Quarterly Operations Report (QOR), Loan Documentation Check List (LDCL), and Self Assessment Anti Fraud Internal Control
Check list. This is a self-assessment process for detecting high risk areas and finding mitigants of those risks. The effectiveness of the
Bank’s Internal control are monitored on an ongoing basis, Key/high risk items are identified and monitored as part of daily activities.
h) Prevention of money laundering and terrorist financing
For prevention of Money Laundering and Terrorist Financing, the bank has a Board approved comprehensive “EBL Money Laundering
and Terrorist Financing Risk Assessment and Management Guideline”. The CEO’s formal Annual commitment on combatting Money
Laundering (ML) and Financing of terrorism (CFT) is issued to ensure greater due diligence and compliance at all levels of the bank.
The bank has also formed a Central Compliance Unit (CCU) under the leadership of Chief Anti Money Laundering Compliance
officer (CAMLCO). Under the supervision of CAMLCO, CCU have Branch Anti Money Laundering Compliance Officer (BAMLCO)
at branches and Department Anti Money Laundering Compliance officer (DAMLCO) in the departments to review and verify the
transactions of accounts to make Suspicious Transactions Reports (STR), and ensure AML & CFT compliance culture throughout the
bank. Training is being conducted continuously for all the officers of the Bank to create awareness and develop the skill for ensuring
KYC (Know Your Clients) compliance and identifying suspicious activities/transactions.
i) Information and communication technology risk
EBL has a comprehensive IT Security Policy and procedures which are formally documented and Approved by Board. In 2016 EBL
obtained Payment Card Industry Data Security Standard (PCI DSS) certificate, which is an international accredition certification of
Data Security. To prevent attack from Cyber criminals/fraudsters IT Division (hereinafter IT) has established standard Physical &
Environmental Security Measures to all sensitive areas (e.g. Data Centre, Disaster Recovery (DR) Site, Power Rooms, Server Rooms,
etc.). IT has standard Logical Security Measures (e.g. Access card, Password Protected Server, Access Log, Measuring Device Logs,
Periodic Testing Results, etc.) to all core devices (server, PC, etc.), connecting devices (switch, router, etc.), security devices (firewall,
IDS, etc.), all applications (core banking system, antivirus, firewall, VPN, utilities, etc.), databases, networks and others. IT has standard
design and practice in network connectivity, access, build-up, configuration, monitoring, maintenance and security. IT has Business
Continuity Management (BCM) to support and handle any human made or natural incident/disaster. IT Security and Risk management
team has also taken initiatives of awareness training for EBL officers as well as customers. We have separate information system audit
to identify control gap and improve system continually.
j) Internal audit
The Bank has established an independent internal audit function with the head of Internal Control & Compliance (ICC). The internal
audit team performs risk based audit on various business and operational areas of the Bank on continuous basis. The audit committee
and the Board regularly reviews the internal audit reports as well as monitor progress of previous findings. However, the Head of Audit
being part of internal control & compliance, report to audit committee of the Board and is responsible to audit committee of the Board.
k) Prevention of fraud
Like any other banks and financial institutions, EBL is also exposed to the inherent risk of fraud and hence implemented a number of
anti fraud controls and procedures specifically designed to prevent and detect any material instances of fraud or irregularities. As per
the requirement of Bangladesh Bank, regular reportings are done on self assessment of various anti fraud controls as well as any incident
of fraud and forgeries that have been identified by the Bank. Regular staff training and awareness programs are taken to ensure that
all officers and staffs of the Bank are fully aware of various fraud risks in their work areas and are prepared to deal with it. Incidence
of fraud/theft has become somewhat inevitable in banking business but can very well be avoided or minimised by creating a highly
regimented environment and harnessing a culture and value of transparency, accountability, trust and teamwork. With this endeavour
a structured “EBL Fraud and Theft Risk Prevention and Management Policy” has been approved by EBL Board.
2A Credit rating of the Bank
As per BRPD circular no. 6 dated 5 July 2006, the Bank has done its credit rating by Credit Rating Information and Services Limited (CRISL)
based on the audited financial statements as at and for the year ended 31 December 2015. The following ratings have been awarded:
Particulars Periods Date of Rating Long term Short term

Entity Rating January to December 2015 22 June 2016 AA ST-2
2B Compliance with Bangladesh Accounting Standards (BASs) and

Bangladesh Financial Reporting Standards (BFRSs)
The Bank has complied with following BASs & BFRSs as adopted by ICAB during the preparation of financial statements as at and for
the year ended 31 December 2016.
Name of BASs / BFRSs BASs / BFRSs No. Status
Presentation of Financial Statements BAS 1 *Applied
Inventories BAS 2 N/A
Statement of Cash Flows BAS 7 *Applied
Accounting Policies, Changes in Accounting Estimates and Errors BAS 8 Applied
Events after the Reporting Period BAS 10 Applied
Construction Contracts BAS 11 N/A
Income Taxes BAS 12 Applied
Property, Plant and Equipment BAS 16 Applied
Leases BAS 17 Applied
Revenue BAS 18 Applied
Employee Benefits BAS 19 Applied
Accounting for Government Grants and Disclosure of Government Assistance BAS 20 N/A
The Effects of Changes in Foreign Exchange Rates BAS 21 Applied
Borrowing Costs BAS 23 N/A
Related Party Disclosures BAS 24 Applied
Accounting and Reporting by Retirement Benefit Plans BAS 26 N/A
Consolidated and Separate Financial Statements BAS 27 Applied
Investments in Associates BAS 28 N/A
Interests in Joint Ventures BAS 31 N/A
Financial Instruments: Presentation BAS 32 *Applied
Earnings per share BAS 33 Applied
Interim Financial Reporting BAS 34 Applied
Impairment of Assets BAS 36 Applied
Provisions, Contingent Liabilities and Contingent Assets BAS 37 *Applied
Intangible Assets BAS 38 Applied
Financial Instruments: Recognition and Measurement BAS 39 *Applied
Investment Property BAS 40 N/A
Agriculture BAS 41 N/A
First-time Adoption of Bangladesh Financial Reporting Standards BFRS 1 N/A
Share-based Payment BFRS 2 N/A
Business Combinations BFRS 3 Applied
Insurance Contracts BFRS 4 N/A
Non-current Assets Held for Sale and Discontinued Operations BFRS 5 *Applied
Exploration for and Evaluation of Mineral Resources BFRS 6 N/A
Financial Instruments: Disclosures BFRS 7 *Applied
Operating Segments BFRS 8 Applied
Consolidated Financial Statements BFRS 10 Applied
Joint Arrangements BFRS 11 N/A
Disclosure of Interests in Other Entities BFRS 12 Applied
Fair Value Measurement BFRS 13 *Applied
Regulatory Deferral Accounts BFRS 14 N/A
* Subject to departure described in note 2.1
N/A = Not Applicable
2B.1 Standards issued but not yet effective

The Institute of Chartered Accountants of Bangladesh (ICAB) has adopted following new standards and amendments to standards
during the year 2016. All previously adopted reporting standards are consistently applied by the Bank as explained in note 2B.
BFRS 9 Financial Instruments
Summary of the requirements
BFRS 9, published in July 2014, replaces the existing guidance in BAS 39 Financial Instruments: Recognition and Measurement. BFRS
9 includes revised guidance on the classification and measurement of financial instruments, a new expected credit loss model for
calculating impairment on financial assets, and new general hedge accounting requirements. It also carries forward the guidance on
recognition and derecognition of financial instruments from BAS 39.
BFRS 9 is effective for annual reporting periods beginning on or after 1 January 2018, with early adoption permitted.
Possible impact on financial statements
The Bank is assessing the potential impact on its financial statements resulting from the application of BFRS 9.
BFRS 15 Revenue from Contracts with Customers
Summary of the requirements
BFRS 15 establishes a comprehensive framework for determining whether, how much and when revenue is recognised. It replaces
existing revenue recognition guidance, including BAS 18 ‘Revenue’, BAS 11 ‘Construction Contracts’ and BFRIC 13 ‘Customer Loyalty
Programmes’.
BFRS 15 is effective for annual reporting periods beginning on or after 1 January 2018, with early adoption permitted.
Possible impact on financial statements
The Bank is assessing the potential impact on its financial statements resulting from the application of BFRS 15.
2C Audit Committee disclosures
Please refer to ‘Report of the Audit Committee’ for details disclosures on Audit Committee presented in other information in the annual
report.
2.11 Approval of financial statements
These financial statements were reviewed by the audit committee of the Board of the Bank in its 93 meeting held on 20 March 2017 and
was subsequently approved by the Board in its 597 meeting held on the same date.
Figures in Taka
Consolidated Bank
Note
2016 2015 2016 2015
3 Cash
Cash in hand (including foreign currencies) 3.1 2,035,038,421 1,781,735,932 2,034,945,887 1,781,450,102
Balance with Bangladesh Bank and its agent
Bank(s) (including foreign currencies) 3.2 10,164,025,705 9,162,962,735 10,164,025,705 9,162,962,735
12,199,064,126 10,944,698,667 12,198,971,592 10,944,412,837
3.1 Cash in hand (including foreign currencies)
Local currency 3.1.1 2,018,392,648 1,755,116,130 2,018,300,114 1,754,830,301

Foreign currencies 16,645,773 26,619,802 16,645,773 26,619,801
2,035,038,421 1,781,735,932 2,034,945,887 1,781,450,102
3.1.1 Local currency
With Bank 2,018,300,114 1,754,830,301 2,018,300,114 1,754,830,301
With Subsidiaries 92,534 285,829 - -
2,018,392,648 1,755,116,130 2,018,300,114 1,754,830,301
3.2 Balance with Bangladesh Bank and its agent Bank(s)

(including foreign currencies)
Bangladesh Bank :
Local currency 9,520,990,214 8,565,018,968 9,520,990,214 8,565,018,968
9,739,527,117 8,808,143,936 9,739,527,117 8,808,143,936
Sonali Bank (as an agent of Bangladesh Bank)-local currency 424,498,588 354,818,799 424,498,588 354,818,799
10,164,025,705 9,162,962,735 10,164,025,705 9,162,962,735
3.a Cash Reserve Ratio (CRR):

As per section 33 of the Bank Company Act 1991 (amended upto 2013) & MPD circular no. 1 dated 23 June 2014 issued by Bangladesh
Bank (effective from 24 June 2014), EBL has been maintaining 6.0% CRR on daily basis and 6.5% on bi-weekly basis. CRR requirement
is calculated on the basis of weekly average total demand and time liabilities (ATDTL) of a base month which is two months back of
the reporting month (i.e. CRR of December 2016 is maintained on the basis of weekly ATDTL of October 2016). Reserve maintained
by the bank as at 31 December is as follows:
Average total demand and time liabilities of October 2016 (excluding inter-bank deposit) 142,252,018,000 131,096,108,800
Daily basis:
Required reserve (6.0% of ATDTL) 8,535,121,080 7,865,766,528
Actual reserve held with Bangladesh Bank (In local currency)* 9,534,108,703 8,413,373,758
Surplus 998,987,623 547,607,230
Bi-weekly basis:
The bank maintained excess cash reserve of Tk. 1,613 million in the last fortnight of 2016 (Tk. 1,562 million was in 2015) calculated
by summing up excess cash reserve maintained over required CRR on daily basis.
3.b Statutory Liquidity Ratio (SLR):
Pursuant to section 33 of the Bank Company Act 1991 (amended upto 2013) & MPD circular no. 2 dated 10 December 2013 issued
by Bangladesh Bank (effective from 1 February 2014), EBL has been maintaining 13% SLR on weekly average total demand and time
liabilities (ATDTL) of a base month which is two months back of the reporting month (i.e. SLR of December 2016 is based on weekly
ATDTL of October 2016). Reserve maintained by the bank as at 31 December is as follows:
Required reserve (13% of ATDTL) 18,492,762,340 17,042,494,144
Actual reserve held (Note 3.c) 21,065,300,056 21,911,739,901
Surplus 2,572,537,716 4,869,245,757
Figures in Taka
Consolidated Bank
Note
2016 2015 2016 2015
3.c Actual reserve held
Excess cash reserve 3.c.1 287,727,533 -
Cash held 2,034,945,887 1,781,450,102
Balance with Sonali Bank 424,498,588 354,818,799
Unencumbered approved securities (HFT) 607,023,408 2,587,554,000
Unencumbered approved securities (HTM) 17,711,104,640 17,182,917,000
Unencumbered approved securities (other eligible) - 5,000,000
21,065,300,056 21,911,739,901
3.c.1 Balance with Bangladesh Bank (local currency) 9,534,108,703 8,413,373,757
Less: Required cash reserve on bi weekly average basis (6.5% of ATDTL) 9,246,381,170 8,521,247,072
Excess cash reserve 287,727,533 -
*As per Bangladesh Bank statement.
As per DOS circular no. 1 dated 19 January 2014 issued by Bangladesh Bank, cash reserve (if any) in excess of 6.5% of ATDTL is
considered an eligible component of Statutory Liquidity Ratio (SLR) for that particular day.
4 Balances with other banks and financial institutions

Balance inside Bangladesh 4.1 9,799,656,546 10,947,113,801 9,021,366,991 10,671,688,124
Balance outside Bangladesh 4.2 826,202,789 528,187,921 4,550,920,216 3,019,295,100
10,625,859,335 11,475,301,722 13,572,287,207 13,690,983,224
4.1 Balance inside Bangladesh
In Current Deposit Accounts with:
Banks 156,931,284 103,454,552 48,830,089 61,828,263
Non Banking Financial Institutions (NBFIs) - - - -
156,931,284 103,454,552 48,830,089 61,828,263
Less: Inter company elimination (8,425,258) (15,631,582) - -
148,506,026 87,822,970 48,830,089 61,828,263
In Special Notice Deposit Accounts with:
Banks 748,980,839 332,393,265 52,662,751 19,847,861
Non Banking Financial Institutions - - - -
748,980,839 332,393,265 52,662,751 19,847,861
Less: Inter company elimination (17,704,470) (68,505,267) - -
731,276,369 263,887,998 52,662,751 19,847,861
In Fixed Deposit Accounts with:

Banks 11,051,915,494 11,735,121,801 11,051,915,494 11,735,121,801
Non Banking Financial Institutions 5,910,000,000 5,675,390,833 5,910,000,000 5,670,000,000
16,961,915,494 17,410,512,634 16,961,915,494 17,405,121,801
Less: Inter unit/company elimination (8,042,041,343) (6,815,109,801) (8,042,041,343) (6,815,109,801)
8,919,874,151 10,595,402,833 8,919,874,151 10,590,012,000
Total 9,799,656,546 10,947,113,801 9,021,366,991 10,671,688,124
4.1.1 Balances of subsidiaries with Banks & NBFIs

With Eastern Bank Limited (eliminated as intra group balance)
EBL Securities Limited 2,712,806 2,708,375
EBL Investments Limited 14,992,009 12,835,864
EBL Finance (HK) Limited 29,932,206 15,631,582
EBL Asset Management Limited 52,911,590 52,961,028
100,548,611 84,136,849
Balance of subsidiaries with other Banks & NBFIs
Banks 799,796,849 294,862,280
Non Banking Financial Institutions - 5,390,833
799,796,849 300,253,113
900,345,460 384,389,962
Figures in Taka
Consolidated Bank
Note
2016 2015 2016 2015
4.2 Balance outside Bangladesh:
In Deposit account (non-interest bearing) with:
AB Bank Limited, India 17,967,351 2,097,304 17,967,351 2,097,304
Al-Rajhi Bank, KSA 314,750 313,817 314,750 313,817
Bank of Bhutan, Bhutan 410,752 1,155,215 410,752 1,155,215
Bank of Nova Scotia, Canada 1,148,953 610,697 1,148,953 610,697
Bank of Tokyo-Mitshubishi UFJ, Ltd., India - 5,439,534 - 5,439,534
Bank of Tokyo-Mitshubishi UFJ, Ltd., UK 530,217 528,857 530,217 528,857
Bank of Tokyo-Mitshubishi UFJ, Ltd., Japan 1,213,332 1,155,491 1,213,332 1,155,491
Citibank NA, USA 187,676,384 284,737,232 187,676,384 284,737,232
Commerz Bank AG, Germany 7,800,616 13,097,220 7,800,616 13,097,220
Deutsche Bank AG, Germany - 3,089,616 - 3,089,616
Habib American Bank, USA - 1,508,687 - 1,508,687
HSBC, Hong Kong - 24,827,436 - -
ICICI Bank Limited, India 21,527,756 35,886,495 21,527,756 35,886,495
ICICI Bank Limited, Hong Kong 23,136,291 - 1,628,998 -
JP Morgan Chase Bank NA, UK 19,022,618 14,490,769 19,022,618 14,490,769
JP Morgan Chase Bank NA, Australia 2,516,210 3,009,541 2,516,210 3,009,541
JP Morgan Chase Bank NA, USA 81,864,884 - 81,864,884 -
JP Morgan Chase Bank NA, Germany 5,623,409 3,091,979 5,623,409 3,091,979
Mashreqbank, USA 8,008,157 23,954,373 8,008,157 23,954,373
National Commercial Bank, KSA 1,383,689 1,472,662 1,383,689 1,472,662
Nepal Bangladesh Bank Limited, Nepal 8,873,179 3,704,502 8,873,179 3,704,502
NIB Bank Limited, Pakistan 39,906,619 16,344,690 39,906,619 16,344,690
Nordea Bank, Norway 1,692,458 326,248 1,692,458 326,248
Standard Chartered Bank, Sri Lanka 7,309,676 - 7,309,676 -
Standard Chartered Bank, Germany 10,047,209 242,669 10,047,209 242,669
Standard Chartered Bank, India 135,928,146 44,684,503 135,928,146 44,684,503
Standard Chartered Bank, USA 132,984,327 40,067,816 132,984,327 40,067,816
Standard Chartered Bank, Singapore 212,326 546,738 212,326 546,738
Wells Fargo, USA 108,732,335 - 108,732,335 -
Zuercher Kantonal Bank, Switzerland 371,145 1,803,830 371,145 1,803,830
826,202,789 528,187,921 804,695,496 503,360,485
Placement by OBU (interest bearing):
EBL Finance (HK) Limited 3,746,224,720 2,515,934,615 3,746,224,720 2,515,934,615
Less: Inter company elimination (3,746,224,720) (2,515,934,615) - -
826,202,789 528,187,921 4,550,920,216 3,019,295,100
Details of foreign currency amounts with exchange rates are presented in Annexure - B.
4.a Balance with other banks and financial institutions

(according to remaining maturity grouping)
Receivable
On demand - 87,822,970 - 61,828,262
In not more than one month 2,911,072,657 8,755,901,344 6,536,114,147 8,509,154,962
In more than one month but not more than three months 4,552,374,878 1,506,186,576 3,873,761,260 4,000,000,000
In more than three months but not more than one year 3,162,411,800 1,125,390,832 3,162,411,800 1,120,000,000
In more than one year but not more than five years - - - -
In more than five years - - - -
10,625,859,335 11,475,301,722 13,572,287,207 13,690,983,224
Figures in Taka
Consolidated Bank
Note
2016 2015 2016 2015
5 Money at call and short notice
Modhumoti Bank Limited 100,000,000 - 100,000,000 -
100,000,000 - 100,000,000 -
6 Investments
Government 6.1 18,320,613,148 19,775,255,082 18,320,613,148 19,775,255,082
Others 6.2 4,619,215,993 4,127,134,524 3,128,020,635 3,622,708,653
22,939,829,141 23,902,389,606 21,448,633,783 23,397,963,735
6.1 Government (Investment in govt. securities)

Treasury Bills 6.1.1 - 1,493,750,198 - 1,493,750,198
Treasury Bonds 6.1.2 18,318,128,048 18,276,720,784 18,318,128,048 18,276,720,784
Prize Bonds 2,485,100 4,784,100 2,485,100 4,784,100
18,320,613,148 19,775,255,082 18,320,613,148 19,775,255,082
6.1.1 Treasury Bills

Held for Trading (HFT) - 1,493,750,198 - 1,493,750,198
Held to Maturity (HTM) - - - -
- 1,493,750,198 - 1,493,750,198
6.1.1.a Treasury bills (maturity wise holding)

Unencumbered
91-day treasury bills - 999,773,960 - 999,773,960
- 1,493,750,198 - 1,493,750,198
6.1.2 Treasury Bonds

Held for Trading (HFT) 607,023,408 1,093,803,638 607,023,408 1,093,803,638
Held to Maturity (HTM) 17,711,104,640 17,182,917,146 17,711,104,640 17,182,917,146
6.1.2.a 18,318,128,048 18,276,720,784 18,318,128,048 18,276,720,784
6.1.2.a Treasury bonds (maturity wise holding)
Unencumbered
2-year treasury bonds 12,199,040 163,810,980 12,199,040 163,810,980
5-year treasury bonds 7,121,525,194 7,234,239,973 7,121,525,194 7,234,239,973
20-year treasury bonds 617,670,754 725,490,685 617,670,754 725,490,685
18,318,128,048 18,276,720,784 18,318,128,048 18,276,720,784
Disclosure on REPO and Reverse Repo transactions is presented in 'Annexure - D'.
6.2 Others (investment in other than govt. securities)

Debentures 6.2.1 - 5,000,000 - 5,000,000
Corporate bonds 6.2.2 540,000,000 560,000,000 540,000,000 560,000,000
Ordinary shares & Mutual Funds (MFs) -
6.2.3 4,079,215,993 3,256,895,635 2,588,020,635 2,752,469,764
quoted and unquoted
Commercial paper 6.2.4 - 305,238,889 - 305,238,889
4,619,215,993 4,127,134,524 3,128,020,635 3,622,708,653
6.2.1 Debentures
House Building Finance Corporation (HBFC) - 5,000,000 - 5,000,000
- 5,000,000 - 5,000,000
6.2.2 Corporate bonds
Trust Bank Subordinated Bond 40,000,000 60,000,000 40,000,000 60,000,000
United Commercial Bank Subordinated Bond 500,000,000 500,000,000 500,000,000 500,000,000
540,000,000 560,000,000 540,000,000 560,000,000
Figures in Taka
Consolidated Bank
Note
2016 2015 2016 2015
6.2.3 Ordinary shares & Mutual Funds (MFs) - quoted and unquoted
Quoted shares & MFs
Quoted shares (sector wise)
Banks 536,909,376 662,864,861 221,496,140 628,209,562
NBFIs 1,012,189,174 323,428,557 454,774,533 189,606,819
Insurances 40,767,599 54,214,655 28,376,197 34,853,918
Fuel & power 478,962,580 293,480,954 215,465,839 215,465,839
Chemicals & pharmaceuticals 386,151,325 373,328,198 240,833,699 240,833,699
Cement & ceramics 12,174,896 35,008,993 3,449,440 10,459,716
Engineering 28,242,890 19,638,307 19,450,469 19,450,469
Others 233,622,087 143,798,625 101,249,378 110,664,802
2,729,019,927 1,905,763,150 1,285,095,695 1,449,544,824
Mutual Funds
EBL Sponsored Mutual Funds:
EBL First Mutual Fund 103,185,000 103,185,000 103,185,000 103,185,000
EBL NRB Mutual Fund 250,973,470 250,973,470 250,973,470 250,973,470
First Bangladesh Fixed Income Fund 750,000,000 750,000,000 750,000,000 750,000,000
Mutual funds - others 186,241,126 195,177,545 166,970,000 166,970,000
1,290,399,596 1,299,336,015 1,271,128,470 1,271,128,470
Total Quoted shares & MFs 4,019,419,523 3,205,099,165 2,556,224,165 2,720,673,294
Unquoted shares & MFs
Shares 59,796,470 51,796,470 31,796,470 31,796,470
59,796,470 51,796,470 31,796,470 31,796,470
Total Ordinary Shares & MFs (Quoted and
4,079,215,993 3,256,895,635 2,588,020,635 2,752,469,764
Unquoted) at cost
6.2.3.1 Market Value of Shares (as on 31 December)
Quoted shares & MFs
Banks 615,946,782 452,447,097 277,008,690 421,434,104
NBFIs 1,036,710,147 280,656,469 392,109,623 150,425,468
Insurances 25,932,939 24,089,939 17,679,448 16,037,386
Fuel & power 439,515,710 222,676,178 179,686,718 159,408,497
Chemicals & pharmaceuticals 399,621,103 401,663,413 256,314,000 252,032,000
Cement & ceramics 2,133,383 21,241,675 2,133,383 7,147,249
Engineering 26,263,611 12,115,500 17,496,000 11,928,000
Others 179,161,612 110,592,403 69,171,609 68,711,959
2,725,285,287 1,525,482,674 1,211,599,471 1,087,124,663
Mutual Funds 1,055,036,376 893,671,399 1,055,036,376 884,915,699
Total 3,780,321,663 2,419,154,073 2,266,635,847 1,972,040,362
* Lock in status of Shares & Mutual Funds Trading Started Lock in period Lock in expiry
Active Fine Chemicals Limited (placement share) 1 Dec 2014 3 years 30 Nov 2017
Tung Hai Knitting & Dyeing Limited (placement share) 9 April 2014 3 Years 8 April 2017
EBL First Mutual Fund (sponsor unit) 19 Aug 2009 10 years 18 Aug 2019
EBL NRB Mutual Fund (sponsor unit) 23 May 2011 10 years 22 May 2021
First Bangladesh Fixed Income Fund (sponsor unit) 19 Mar 2012 10 years 18 Mar 2022
All shares of Active Fine Chemicals Limited and 10% of all three EBL sponsored MFs shall be under lock-in status for 3 and 10 years
respectively from the date of prospectus issued.
Figures in Taka
Consolidated Bank
Note
2016 2015 2016 2015
6.2.4 Commercial paper
Rangs Properties Limited - 205,238,889 - 205,238,889
Flammingo Fashions Limited - 100,000,000 - 100,000,000
- 305,238,889 - 305,238,889
6.a Remaining maturity grouping of investments

On demand 2,485,100 4,784,100 2,485,100 4,784,100
In not more than one month - 999,773,960 - 999,773,960
In more than one month but not more than three months 12,199,041 205,238,889 12,199,041 205,238,889
In more than one year but not more than five years 7,271,900,617 11,116,322,550 7,271,900,617 11,096,322,551
In more than five years 8,221,042,101 7,588,781,874 8,221,042,101 7,588,781,874
22,939,829,141 23,902,389,606 21,448,633,783 23,397,963,735
7 Loans and advances

Loans, cash credits, overdrafts etc. 7.1 137,473,558,900 120,083,051,166 137,051,246,091 118,427,210,727
Bills purchased and discounted 7.2 18,897,775,910 14,366,370,854 15,032,441,445 11,799,113,738
156,371,334,810 134,449,422,020 152,083,687,536 130,226,324,465
7.1 Loans, cash credits, overdrafts etc.
Inside Bangladesh
Loans - general 122,543,498,693 104,679,872,587 122,423,498,693 104,497,372,587
Cash credit 188,458,068 162,885,964 188,458,068 162,885,964
Overdraft 15,796,864,111 15,422,792,615 14,439,289,330 13,766,952,176
138,528,820,872 120,265,551,166 137,051,246,091 118,427,210,727
Less: Inter Company Elimination (1,055,261,972) (182,500,000) - -
137,473,558,900 120,083,051,166 137,051,246,091 118,427,210,727
7.2 Bills purchased and discounted
Inside Bangladesh
Local bills /documents 14,971,542,046 11,764,383,784 14,971,542,046 11,764,383,784
Foreign bills /documents 60,899,399 34,729,954 60,899,399 34,729,954
15,032,441,445 11,799,113,738 15,032,441,445 11,799,113,738
Outside Bangladesh
Bills financed & UPAS ( by EBL Finance HK Ltd) 3,865,334,465 2,567,257,116 - -
18,897,775,910 14,366,370,854 15,032,441,445 11,799,113,738
7.2.1 Bills purchased and discounted

(on the basis of the residual maturity grouping)
On demand 513,373,087 382,672,305 513,373,087 125,946,593
Within one month 2,297,489,045 3,510,674,025 2,297,489,045 2,740,496,890
In more than one month but less than three months 5,218,820,581 4,980,290,590 5,218,820,581 3,439,936,321
In more than three months but less than six months 4,893,557,554 3,945,134,708 4,893,557,554 3,945,134,708
Above six months 5,974,535,643 1,547,599,226 2,109,201,178 1,547,599,226
18,897,775,910 14,366,370,854 15,032,441,445 11,799,113,738
7.a Residual maturity grouping of loans and advances including
bills purchased & discounted
Receivable
On demand 5,316,966,920 5,612,162,418 5,316,966,920 5,612,162,418
156,371,334,810 134,449,422,020 152,083,687,536 130,226,324,465
Figures in Taka
Consolidated Bank
Note
2016 2015 2016 2015
7.b Loans and advances on the basis of significant concentration
7.b.1 Loans and advances to directors, executives and others
Advance to directors and their allied concerns - - - -
Advances to Managing Director & CEO 16,233,480 16,979,755 16,233,480 16,979,755
Advances to other executives and staffs 1,576,821,503 1,583,933,905 1,576,821,503 1,583,933,905
Advances to customers (group wise) 119,016,781,914 106,852,353,443 114,729,134,641 102,629,255,888
Industrial loans and advances 35,761,497,913 25,996,154,917 35,761,497,912 25,996,154,917
156,371,334,810 134,449,422,020 152,083,687,536 130,226,324,465
7.b.2 Large loan details (loans and advances extended to any customer exceeding 10% of the Bank's total capital)
* Total loans and advances (in Tk. million) 68,586 52,070
Number of customers 19 17
Classified amount thereon Nil Nil
* This amount represents total loans and advances (comprising funded and non funded facilities) to each customer exceeding Tk.
2,247.2 million which is equivalent to 10% of total capital of the bank as at 31 December 2016.
7.b.3 Industry-wise concentration of loans and advances including bills purchased and discounted
Commercial and trading 29,817,370,102 29,885,003,525 25,952,035,637 27,317,746,409
Construction 2,976,988,855 1,600,309,645 2,976,988,855 1,600,309,645
Sugar & edible oil refineries 2,391,560,786 3,146,899,042 2,391,560,786 3,146,899,042
Crops, fisheries & livestocks 3,226,079,584 2,180,536,172 3,226,079,584 2,180,536,172
Electronic goods 2,803,890,226 1,494,952,858 2,803,890,226 1,494,952,858
Individuals 21,103,197,968 18,469,379,469 20,680,885,159 16,813,539,030
Pharmaceuticals industry 2,009,484,248 1,973,952,085 2,009,484,248 1,973,952,085
Readymade garments industry 19,932,391,994 14,382,763,026 19,932,391,994 14,382,763,026
Ship breaking industry 6,404,516,686 3,008,572,169 6,404,516,686 3,008,572,169
Metal & steel products 13,796,487,042 9,976,666,857 13,796,487,042 9,976,666,857
Transport & e-communication 7,666,590,425 8,156,360,416 7,666,590,425 8,156,360,416
Textile mills 7,074,910,441 10,816,159,568 7,074,910,441 10,816,159,568
Power & fuel 2,374,954,846 2,346,707,436 2,374,954,846 2,346,707,436
Rubber & plastic industry 2,971,485,863 3,656,561,447 2,971,485,863 3,656,561,447
Agri & micro credit through NGO 6,673,394,339 4,437,026,405 6,673,394,339 4,437,026,405
Others 25,148,031,405 18,917,571,900 25,148,031,405 18,917,571,900
156,371,334,810 134,449,422,020 152,083,687,536 130,226,324,465
7.b.4 Sector-wise concentration of loans and advances including bills purchased and discounted
Government sector - - - -
Public sector 450,818,892 933,246,060 450,818,892 933,246,060
Private sector 155,920,515,918 133,516,175,960 151,632,868,644 129,293,078,405
156,371,334,810 134,449,422,020 152,083,687,536 130,226,324,465
7.b.5 Geographical location-wise concentration of loans and advances including bills purchased and discounted
Inside Bangladesh
Dhaka division 106,322,645,043 94,003,324,833 105,905,420,832 92,347,484,394
Chittagong division 40,225,258,181 33,887,376,355 40,220,169,583 33,887,376,355
Sylhet division 832,412,785 664,704,895 832,412,785 664,704,895
Rajshahi division 2,401,185,758 1,326,949,882 2,401,185,758 1,326,949,882
Khulna division 1,538,257,220 1,212,673,106 1,538,257,220 1,212,673,106
Rangpur division 360,542,434 206,858,878 360,542,434 206,858,878
Barisal division 131,943,731 54,162,959 131,943,731 54,162,959
Mymensingh division 693,755,192 526,113,996 693,755,193 526,113,996
152,506,000,344 131,882,164,904 152,083,687,536 130,226,324,465
Outside Bangladesh
156,371,334,810 134,449,422,020 152,083,687,536 130,226,324,465
7.b.6 Geographical location and business segment - wise concentration of loans and advances
(including bills purchased and discounted) for 2016 only Figures in Taka
Consumer
Corporate SME Total
(including staff)
Division
Dhaka division 77,141,623,198 14,467,794,613 14,296,003,021 105,905,420,832
Chittagong division 30,236,628,822 5,314,838,052 4,668,702,709 40,220,169,583
Sylhet division - 378,818,468 453,594,317 832,412,785
Rajshahi division 1,225,384,402 834,095,747 341,705,610 2,401,185,759
Khulna division - 1,104,424,613 433,832,607 1,538,257,220
Rangpur division - 222,454,345 138,088,089 360,542,434
Barisal division - 52,070,123 79,873,608 131,943,731
Mymensingh division - 424,653,895 269,101,297 693,755,192
108,603,636,422 22,799,149,856 20,680,901,258 152,083,687,536
Consolidated Bank
Note
2016 2015 2016 2015
7.b.7 Business segment - wise concentration of loans and advances including bills purchased and discounted
Corporate 85,192,645,429 78,898,693,370 86,040,026,237 76,116,721,491
Offshore Banking Unit (OBU) 26,428,944,651 17,755,397,724 22,563,610,186 17,755,397,724
SME 22,799,149,857 19,518,002,400 22,799,149,856 19,518,002,400
Consumer 20,357,539,891 16,676,414,866 19,087,846,275 15,235,289,190
Executives & staffs 1,593,054,982 1,600,913,660 1,593,054,982 1,600,913,660
156,371,334,810 134,449,422,020 152,083,687,536 130,226,324,465
7.b.8 Loans & advances-CL category wise concentration
Inside Bangladesh
Continuous loan (CL-2)
Consumer finance 5,787,850,028 5,741,443,585 4,430,275,247 4,300,318,511
Small & Medium Enterprise (SME) 3,281,726,793 4,357,305,727 3,281,726,793 4,357,305,727
Loans to BHs/MBs/SDs against shares 935,261,972 - 935,261,972 -
Other corporate loans 5,045,213,340 5,486,896,844 5,980,475,312 5,272,181,479
15,050,052,133 15,585,646,156 14,627,739,324 13,929,805,717
Demand loan (CL-3)
Corporate loans 67,948,471,043 63,784,128,182 67,948,471,043 63,784,128,182
72,959,688,896 68,156,494,683 72,959,688,896 68,156,494,683
Term loan (CL-4)
Consumer finance (including staff, other than HF) 8,094,479,657 6,705,351,915 8,094,479,657 6,705,351,915
Housing Finance (HF) 1,513,248,291 1,124,195,857 1,513,248,291 1,124,195,857
Corporate loans 39,189,944,143 27,981,625,181 39,189,944,143 27,981,625,181
62,394,039,134 46,391,533,398 62,394,039,134 46,391,533,398
Short term agri credit and microcredit (CL-5)
Short term agri credit 2,102,220,182 1,748,490,667 2,102,220,182 1,748,490,667
2,102,220,182 1,748,490,667 2,102,220,182 1,748,490,667
Outside Bangladesh
156,371,334,810 134,449,422,020 152,083,687,536 130,226,324,465
Figures in Taka
Consolidated Bank
Note
2016 2015 2016 2015
7.b.9 Security/collateral-wise concentration of loans and advances
(including bills purchased and discounted)
Collateral of movable/immovable assets 54,279,681,784 49,349,436,772 54,279,681,784 49,349,436,772
Local banks and financial institutions guarantee 3,671,150,925 1,684,446,983 3,671,150,925 1,684,446,983
Government guarantee 450,818,892 933,246,060 450,818,892 933,246,060
Foreign bank guarantee - - - -
Export documents 7,495,045,592 6,311,954,212 7,495,045,592 6,311,954,212
Fixed Deposit Receipts (FDR)-own bank 8,608,369,035 6,085,043,917 8,608,369,035 6,085,043,917
FDR of other banks 703,636,982 148,447,814 703,636,982 148,447,814
Government bonds - - - -
Personal guarantee 10,816,684,856 9,340,588,870 10,816,684,856 9,340,588,870
Other securities (hypothecation charges) 70,345,946,744 60,596,257,392 66,058,299,470 56,373,159,837
156,371,334,810 134,449,422,020 152,083,687,536 130,226,324,465
7.b.10 Classified and unclassified loans & advances

Unclassified
Standard (including staff loan) 148,556,604,639 126,315,370,850 144,481,893,635 122,213,261,394
Special Mention Accounts (SMA) 3,505,787,270 3,749,738,067 3,505,787,270 3,749,738,067
152,062,391,909 130,065,108,917 147,987,680,905 125,962,999,461
Classified
Sub-standard 731,150,983 316,593,900 731,150,983 316,593,900
Doubtful 280,664,510 277,915,955 280,664,510 277,915,955
Bad/Loss 3,297,127,408 3,789,803,248 3,084,191,138 3,668,815,149
7.b.11 4,308,942,901 4,384,313,103 4,096,006,631 4,263,325,004
156,371,334,810 134,449,422,020 152,083,687,536 130,226,324,465
Percentage of Classified Loans & Advances / NPL 2.76% 3.26% 2.69% 3.27%
7.b.10.a The amount reported above under SMA category includes certain loan accounts with an aggregate outstanding of Tk. 2,557.4 million
as at 31 December 2016 (Tk. 2,963.2 million as at 31 December 2015) which has not been reported as classified as at year-end on the
basis of stay order from the Honorable High Court Division of the Supreme Court of Bangladesh. As at year end 2016, an aggregate
amount of Tk. 1,083.16 million (Tk. 876.0 million in 2015) has been kept as specific provision against required provision of Tk.
1,482.14 million if all those accounts are considered as classified as per BRPD circular no. 14 dated 23 September 2012.
7.b.11 Movements of classified loans and advances
Opening balance 4,384,313,103 5,183,213,375 4,263,325,004 5,157,068,521
Additions during the year 3,114,279,042 2,475,118,992 3,022,330,871 2,380,275,747
Reductions during the year (3,189,649,244) (3,274,019,264) (3,189,649,244) (3,274,019,264)
Closing balance 7.b.11.a 4,308,942,901 4,384,313,103 4,096,006,631 4,263,325,004
Measures taken for recovery of classified loans and advances:

The Bank in general takes following steps to recover its classified loans and advances:
i) Sending letters and reminders to customers.
ii) Engaging specialised recovery team for holding discussion with customers to recover the loans and advances.
iii) Assigning debt collection agency (third party).
iv) Taking repossession of hypothecated vehicles/mortgaged properties.
v) Disposal/encashment of security through auction.
vi) Taking legal proceedings and settlement.
vii) Reporting to central bank.
viii) Rescheduling, restructuring, waiver or Written off.
ix) Negotiation and settlement with approval from competent authority.
Figures in Taka
2016 2015
Taka % Taka %
7.b.11.a Business segment - wise classified loans & advances of the Bank
Corporate 2,180,864,741 53.24% 2,633,204,369 61.76%
Offshore Banking Unit - - - -
SME 1,577,401,758 38.51% 1,270,521,298 29.80%
Consumer 337,740,132 8.25% 359,599,337 8.43%
4,096,006,631 100.00% 4,263,325,004 100.00%
7.b.11.b Industry-wise concentration of classified loans
& advances of the Bank
Commercial and trading 1,651,708,162 40.32% 1,906,287,339 44.71%
Sugar & edible oil refinery 7,145,317 0.17% 733,866 0.02%
Crops, fisheries & livestocks 1,619,615 0.04% 1,002,218 0.02%
Electronics goods 22,766,237 0.56% 9,825,795 0.23%
Individuals 337,740,132 8.25% 359,599,336 8.43%
Readymade garments industry 166,907,738 4.07% 94,545,656 2.22%
Ship breaking industry 717,817,699 17.52% 700,526,231 16.43%
Metal & steel products 11,410,864 0.28% 205,868,729 4.83%
Power & fuel 156,800,802 3.83% 142,636,546 3.35%
Transport & e-communication 355,566,152 8.68% 250,420,754 5.87%
Textile mills 270,548,723 6.61% 187,214,121 4.39%
Agri & micro credit through NGO 15,970,590 0.39% 18,161,173 0.43%
Others 380,004,600 9.28% 386,503,240 9.07%
4,096,006,631 100.00% 4,263,325,004 100.00%
Consolidated Bank
Note
2016 2015 2016 2015
7.b.12 Particulars of loans and advances
i) Debts considered good in respect of which the
145,554,649,954 125,179,542,848 141,267,002,680 120,956,445,293
bank is fully secured
ii) Debts considered good for which the bank
holds no other security than the debtor's 4,427,702,866 4,297,752,628 4,427,702,866 4,297,752,629
personal security
iii) Debts considered good and secured by the
personal security of one or more parties in 6,388,981,990 4,972,126,544 6,388,981,990 4,972,126,543
addition to the personal security of the debtors.
iv) Debts adversely classified; for which no
- - - -
provision is created.
156,371,334,810 134,449,422,020 152,083,687,536 130,226,324,465
v) Debts due by directors or officers of the bank
or any of them either jointly or severally with any 1,593,054,982 1,600,913,660 1,593,054,982 1,600,913,660
other persons.
vi) Debts due by companies and firms in which
the directors of the bank have interests as
- - - -
directors, partners or managing agent or in case
of private companies as members.
vii) Maximum total amount of advances,
including temporary advances made at any
time during the period to directors or managers 1,593,054,982 1,600,913,660 1,593,054,982 1,600,913,660
or officers of the bank or any of them either
severally or jointly with any other persons.
viii) Maximum total amount of advances,
including temporary advances, granted during
the period to the companies or firms in which the
- - - -
directors of the bank have interests as directors,
partners or managing agents or, in case of private
companies as members.
ix) Due from other banking companies - - - -
Figures in Taka
Consolidated Bank
Note
2016 2015 2016 2015
x) Information in respect of classified loans and
- - - -
advances
a) Classified loans for which interest/profit not
4,308,942,901 4,384,313,103 4,096,006,631 4,263,325,004
credited to income
(i) (Decrease)/Increase of provision (specific) 1,826,806,114 1,558,103,619 1,826,806,114 1,558,103,619
(ii) Amount of written off debt against fully
1,957,170,216 2,129,901,812 1,957,170,216 2,129,901,812
provided debts
(iii) Amount of debt recovered against the debt
380,021,967 281,710,606 380,021,967 281,710,606
which was previously written off
b) Amount of provision kept against loans
2,445,493,404 2,426,808,099 2,415,147,538 2,400,663,245
classified as bad/loss as at the Balance Sheet date.
c) Amount of interest creditable to the interest
1,476,831,794 1,444,993,449 1,294,241,389 1,350,150,204
suspense account
xi) Cumulative amount of written off loans:
Opening Balance 5,668,003,576 3,538,101,764 5,668,003,576 3,538,101,764
Amount written off during the year 1,957,170,216 2,129,901,812 1,957,170,216 2,129,901,812
Balance of written off loans and advances 7,625,173,792 5,668,003,576 7,625,173,792 5,668,003,576
7.b.13 Cumulative amount of recovery from written off loans 1,647,197,214 1,267,175,247 1,647,197,214 1,267,175,247
7.b.14 Cumulative amount of written off loans for which
9,396,944,855 7,344,042,699 9,396,944,855 7,344,042,699
law suits have been filed (note 7.b.15)
7.b.15 Details of cumulative amount of written off loans
including legal and other charges (note 7.b.15.1)
Opening balance 7,344,042,699 4,845,715,780 7,344,042,699 4,845,715,780
During the year 2,052,902,156 2,498,326,919 2,052,902,156 2,498,326,919
Closing balance 9,396,944,855 7,344,042,699 9,396,944,855 7,344,042,699
7.b.15.1 Cumulative number of written off loan accounts against
which law suits have been filed
Opening balance 5,227 3,297
During the year 946 1,930
Closing balance 6,173 5,227
8 Fixed assets including land, building, furniture and fixtures
Cost (Revalued amount in case of Lands)
Freehold land and land development 4,044,759,466 4,044,759,466 4,044,759,466 4,044,759,466
Buildings on freehold land 730,856,590 730,856,590 730,856,590 730,856,590
Building under construction* 631,520,511 572,749,420 631,520,511 572,749,420
Machinery and equipment 768,107,795 727,963,344 761,627,108 722,753,229
Computer and network equipments 527,838,289 490,832,078 521,069,734 485,274,103
Furniture and fixtures 392,605,837 381,166,863 379,436,402 370,663,983
Vehicles 140,989,183 134,682,854 135,690,824 131,612,854
Leased assets (finance lease) 90,084,859 90,084,859 90,084,859 90,084,859
Software 432,406,833 337,104,712 429,249,953 334,132,732
Total cost 7,759,169,363 7,510,200,186 7,724,295,447 7,482,887,236
Accumulated depreciation and amortisation (1,805,012,609) (1,557,069,809) (1,784,201,499) (1,540,182,182)
Written down value at 31 December 5,954,156,754 5,953,130,377 5,940,093,948 5,942,705,054
* Building under construction represents the accumulated cost incurred for under construction corporate head office building located
at 100, Gulshan Avenue, Dhaka and other small establishments on different lands of the bank and is classified as fixed assets under
BAS 16 ‘Property, Plant & Equipment’ assuming that future economic benefit associated with the asset will flow to the entity in near
future. However, depreciation of the asset will commence from the date when it is available for use.
Details of the fixed assets are presented in ‘Annexure-A’.
Figures in Taka
Consolidated Bank
Note
2016 2015 2016 2015
9 Other assets
Income generating
Investment in subsidiary-EBL Securities Limited 9.1 - - 1,967,400,000 1,367,400,000
Investment in subsidiary-EBL Investments Limited 9.2 - - 299,999,900 299,999,900
Investment in subsidiary-EBL Finance (HK) Limited 9.3 - - 14,779,352 14,779,352
Investment in subsidiary-EBL Asset Management Limited 9.4 - - 49,999,900 49,999,900
Trading Right Entitlement Certificate (TREC) of DSE 9.5 553,800,000 553,800,000 - -
Trading Right Entitlement Certificate (TREC) of CSE 9.6 201,500,000 201,500,000 - -
Non- Income generating
Receivable from subsidiaries 9.7 - - 213,833,968 6,626,831
Other assets of subsidiaries 9.8 243,633,584 11,124,715 - -
Stock of stationeries 12,624,241 16,489,089 12,624,241 16,489,089
Stamps on hand 3,382,597 3,276,242 3,371,397 3,234,292
Advance to staff for expenses 9.9 1,484,658 2,401,000 1,484,658 2,401,000
Security deposits-govt. agencies 6,934,714 6,762,514 6,494,714 6,322,514
Interest and dividend receivables 9.10 628,557,273 987,521,370 776,972,929 1,022,701,957
Sundry receivables 9.11 480,080,667 657,431,870 443,006,103 657,431,870
Advance rent 309,150,611 274,353,565 306,458,786 270,889,357
Prepayments and advance to vendors 654,623,283 590,649,401 654,196,868 581,711,833
Deferred tax assets (net off liabilities) 9.12 937,110,774 906,971,909 937,110,774 906,971,909
4,032,882,402 4,212,281,675 5,687,733,590 5,206,959,803
9.1 Investment in subsidiary-EBL Securities Limited
EBL acquired its securities brokerage subsidiary fully in two phases at a total cost of Tk. 479.90 million and injected afterwards Tk.
1,487.50 million as fresh capital.
9.2 Investment in subsidiary-EBL Investments Limited
This fully owned subsidiary of EBL was incorporated on 30 December 2009 with an authorised capital of Tk. 1,000 million and paid
up capital of Tk. 300 million. It was awarded merchant banking license by BSEC on January 2013 and started its full fledged merchant
banking operations since then.
9.3 Investment in subsidiary-EBL Finance (HK) Limited
EBL Finance (HK) Limited, the first fully owned foreign subsidiary of EBL, was incorporated on 28 November 2011 with an authorised capital of
HKD 1.41 million (equivalent to Tk. 14.78 million). This subsidiary commenced its full fledged operations in Hong Kong from early 2013.
9.4 Investment in subsidiary-EBL Asset Management Limited
This is another fully owned subsidiary of EBL incorporated on 9 January 2011 with an authorised capital of Tk. 250 million. It has fully
subscribed paid up capital of Tk. 50 million and is waiting to get required license from BSEC to start full fledged operations.
9.5 Fair value of DSE Membership (currently recognised as TREC of DSE)
While assessing value of EBL Securities Limited in 2010, the independent valuer (a professional accounting firm) determined the fair
value of DSE membership only taking book value of all other assets and liabilities as it was. While acquiring the rest 40% shares in
2012 based on valuation done by ACNABIN, Chartered Accountants, the Bank considered only 40% of fair value/market value of DSE
membership i.e. BDT 344.40 million (instead of full value of BDT 861 million as of 30 June 2011) and thereby avoided booking any
revaluation gain of 60% shares acquired earlier.
9.6 Value of CSE Membership (currently recognised as TREC of CSE)
EBL Securities Limited acquired CSE Membership at a cost of BDT 201.50 million in 2012 and started its trading operation in 2013.
9.a Trading Right Entitlement Certificate (TREC) of DSE & CSE (obtained in exchange of membership of DSE & CSE under
Demutualisation Scheme)
As per Exchange Demutualization Act 2013, EBLSL was awarded Trading Right Entitlement Certificate (TREC) as well as ordinary shares
of DSE and CSE in exchange of membership licenses under Demutualisation Scheme (“the Scheme”). Share composition is as follows:
Membership No of Shares Face Value (Tk.)
Dhaka Stock Exchange Limited 7,215,106 10
Chittagong Stock Exchange Limited 4,287,330 10
Total number and value of shares 11,502,436 10
Implementation of the ‘Scheme’ is yet to be completed and these shares are also currently not traded. Hence, the actual fair value of
TREC and ordinary shares of DSE & CSE is not readily ascertainable. However, management expects the fair value of TREC & shares
of DSE & CSE altogether to be similar or higher than the current value. Once further clarifications about the scheme and related
factors are available to determine the fair value, required adjustment can be made, if any, at that time.
Figures in Taka
Consolidated Bank
Note
2016 2015 2016 2015
9.7 Receivable from Subsidiaries
Receivable from:
EBL Securities Limited 213,833,968 2,087,400
EBL Finance (HK) Limited - 4,188,653
EBL Asset Management Limited - 350,778
213,833,968 6,626,831
9.8 Other assets of subsidiaries
Accounts receivable 251,652,973 15,438,013

Deferred revenue expenses 5,573 25,000
251,658,546 15,463,013
Less: Inter company elimination (8,024,962) (4,338,298)
243,633,584 11,124,715
9.9 Advance to staff for expenses
Due for
Less than three months 1,484,658 2,175,990 1,484,658 2,175,990
More than three months but less than six
- 35,010 - 35,010
months
More than six months but less than nine months - 190,000 - 190,000
More than nine months but less than twelve months - - - -
More than twelve months - - - -
1,484,658 2,401,000 1,484,658 2,401,000
9.10 Interest and dividend receivables
Interest receivables on placement 112,531,829 137,847,351 112,531,829 137,600,271
Interest receivables on government securities 510,024,704 832,569,627 510,024,704 832,569,627
Interest receivables on non-government securities 22,083,333 31,701,140 22,083,333 31,701,140
Dividend receivables 152,236,234 32,952,205 143,890,363 30,711,900
796,876,100 1,035,070,323 788,530,229 1,032,582,938
Less: Inter unit/company elimination (168,318,827) (47,548,953) (11,557,300) (9,880,981)
628,557,273 987,521,370 776,972,929 1,022,701,957
9.11 Sundry receivables
Receivable from BB for Sanchaypatra and WEDB 9.11.a 178,190,993 461,054,558 178,190,993 461,054,558
Excise duty receivable from customers 116,886,643 81,957,413 116,886,643 81,957,413
Counter party receivable for Reverse REPO - 3,300,274 - 3,300,274
NRB remittance 1,220,724 1,488,390 1,220,724 1,488,390
Recoverable expenses 3,365,324 2,870,002 3,365,324 2,870,002
Cards acquiring/transactional account 106,364,299 102,210,483 106,364,299 102,210,483
Other receivables 74,052,684 4,550,750 36,978,120 4,550,750
480,080,667 657,431,870 443,006,103 657,431,870
9.11.a Receivable from Bangladesh Bank for Sanchaypatra & WEDB

For encashment of Sanchaypatra 177,257,847 460,214,134 177,257,847 460,214,134
For encashment of WEDB (Wage Earners Development Bond) 933,146 840,424 933,146 840,424
178,190,993 461,054,558 178,190,993 461,054,558
9.12 Deferred tax assets (net off liabilities)
Deferred tax asset 9.12.a 966,059,015 940,265,298 966,059,015 940,265,298
Deferred tax liability 9.12.b 28,948,241 33,293,389 28,948,241 33,293,389
937,110,774 906,971,909 937,110,774 906,971,909
Figures in Taka
Consolidated Bank
Note
2016 2015 2016 2015
9.12.a Deferred tax asset
Temporary timing difference between charging specific provision and written off B/L loans:
Cumulative provision made against bad/loss loans 4,043,734,788 4,230,758,840
Adjustment of corresponding provision on write off (1,628,587,251) (1,880,095,595)
Deductible temporary difference 2,415,147,537 2,350,663,245
Tax rate 40.00% 40.00%
Deferred tax asset 966,059,015 940,265,298
Opening deferred tax asset 940,265,298 865,763,076
Deferred tax income (25,793,717) (74,502,222)
9.12.b Deferred tax liability

Temporary timing difference in written down value of fixed assets
Carrying amount of fixed assets 1,253,539,255 1,310,838,967
Tax base 1,181,168,653 1,227,605,495
Taxable temporary difference 72,370,602 83,233,472
Tax rate 40.00% 40.00%
Deferred tax liability 28,948,241 33,293,389
Opening deferred tax liability 33,293,389 38,710,497
Deferred tax income (4,345,148) (5,417,108)
Deferred tax asset/liability have been recognised and measured as per BAS 12 ‘Income taxes’ and BRPD circular no. 11 dated 12 December 2011.
In reality, buyers bear the tax on behalf of sellers at the time of land registration and taxes paid at the time of land registration are
final discharge of related tax liability of the seller (the bank). Hence, no deferred tax liability has been recognised on land revaluation
reserve of the bank. There is no other material temporary timing difference in classified assets/liabilities for which deferred tax asset/
liability is required to be accounted for in the year.
10 Non-banking assets
The Bank was awarded absolute ownership on few mortgaged properties through the verdict of honorable court under section 33(7)
of the Artharin Adalat Act 2003. These were recorded as non-banking assets (carrying value of which was BDT 154,050,500 as on
reporting date) as per valuation report submitted by professional valuation firm. Value of the assets received in addition to the loan
outstanding/written off loans was kept as reserve against non-banking assets. Following are the details:
Name of Parties Assets details Entitlement Date
Safa Garments Ltd .* 18 decimal of land Tejgaon, Dhaka 18 January 2005 8,727,000 8,727,000 8,727,000 8,727,000
Arshim & co 12 Katha of Land, Tejgaon, Dhaka 27 March 2007 4,200,000 4,200,000 4,200,000 4,200,000
Innovative Computer Ltd. 11.25 Decimal of Land, Dhaka 7 June 2007 262,000 262,000 262,000 262,000
North American Computer 6.5 Decimal of Land, 16 July 2007 31,600,000 31,600,000 31,600,000 31,600,000
Dynamics and ors. Tejgaon, Dhaka
Bangla Union Steel 82.98 Decimal of Land, 30 July 2007 19,617,500 19,617,500 19,617,500 19,617,500
Ind. Ltd. Chittagong
Computer Bazar 0.14 acres of Land, 21 June 2009 1,696,000 1,696,000 1,696,000 1,696,000
Network Sabujbagh, Dhaka
Stec Fashions Ltd. 28.03 Deimal of land, 26 January 2009 2,321,000 2,321,000 2,321,000 2,321,000
Mirpur, Dhaka
Royals Paper Store 106.50 Decimal of Land, Dhaka 21 May 2009 7,727,000 7,727,000 7,727,000 7,727,000
Sabbir Ahmed 6 Decimal of Land, Mirpur, Dhaka 10 May 2007 600,000 600,000 600,000 600,000
Tri Angle Trading 0.33 Acres of Land, Savar, Dhaka 26 April 2007 6,600,000 6,600,000 6,600,000 6,600,000
Associates
Unicorn Bangladesh Ltd. 16.5 Decimal of Land, Dhaka 22 November 2007 15,000,000 15,000,000 15,000,000 15,000,000
HM Yunus 1.84 Acres of Land, Gazipur 6 February 2008 55,700,000 55,700,000 55,700,000 55,700,000
154,050,500 154,050,500 154,050,500 154,050,500
*After expiry of initial 7 years period of holding in 2012 as allowed by the Bank Company Act 1991 (amended upto 2013), the Bank was granted
extension of 1 year (till 17 January 2013) by Bangladesh Bank (BB). After expiry of that extended period, the Bank again applied to BB for extension
but BB advised the Bank to ensure taking absolute possession and dispose the property as soon as possible. Subsequently EBL published sale notice
on 13 January 2014, 5 March 2015 & 25 March 2016 to dispose the property at its earliest but no bidder participated yet.
For rest of the properties, EBL has obtained time extension from Bangladesh Bank after expiry of initial 7 years. Meanwhile, EBL has
published general sales notice to dispose those properties at earliest. But no amount was recovered against NBA during 2016. The
Bank has maintained required amount of provision (book value of NBA minus Reserve against NBA) to avoid any further loss on
impairment in future due to complexity in taking absolute possession and/or selling the same.
Figures in Taka
Consolidated Bank
Note
2016 2015 2016 2015
11 Borrowings from other banks, financial
institutions and agents
Borrowings inside Bangladesh 11.1 23,137,137,589 17,354,480,816 22,828,611,359 16,363,120,640
Borrowings outside Bangladesh 11.2 16,232,548,390 14,180,358,799 16,232,548,390 14,180,358,799
39,369,685,979 31,534,839,615 39,061,159,749 30,543,479,439
11.1 Borrowings inside Bangladesh
Demand Borrowing:
Banks 9,623,829,576 7,608,969,976 8,442,041,374 6,815,109,800
Non Banking Financial Institutions (NBFIs) 182,000,000 380,000,000 - -
9,805,829,576 7,988,969,976 8,442,041,374 6,815,109,800
Less: Inter unit/company elimination (9,097,303,346) (6,997,609,800) (8,042,041,374) (6,815,109,800)
708,526,230 991,360,176 400,000,000 -
Term borrowing:
Banks 11,365,005,507 7,014,686,116 7,618,771,600 4,487,815,240
Non Banking Financial Institutions (NBFIs) - - - -
11,365,005,507 7,014,686,116 7,618,771,600 4,487,815,240
Less: Inter unit/company elimination (3,746,233,907) (2,526,870,876) - -
7,618,771,600 4,487,815,240 7,618,771,600 4,487,815,240
Subordinated bond & other borrowings under schemes:
From Bangladesh Bank & others
Investment Promotion & Financing Facility (IPFF) 608,718,282 699,476,518 608,718,282 699,476,518
Export Development Fund (EDF) 8,044,627,065 5,424,456,002 8,044,627,065 5,424,456,002
Refinancing for agrobased industries 776,672,399 906,117,799 776,672,399 906,117,799
Refinancing agribusiness - revolving 1,292,885,157 1,275,886,081 1,292,885,157 1,275,886,081
Second crop diversification project 1,019,369,000 1,019,369,000 1,019,369,000 1,019,369,000
SME Foundation 45,000,000 50,000,000 45,000,000 50,000,000
Long Term Financing Facility (LTFF) 522,567,856 - 522,567,856 -
Non convertible subordinated bond 11.1.a 2,500,000,000 2,500,000,000 2,500,000,000 2,500,000,000
14,809,839,759 11,875,305,400 14,809,839,759 11,875,305,400
Total 23,137,137,589 17,354,480,816 22,828,611,359 16,363,120,640
11.1.a Non-Convertible Subordinated Bond
The Bank with due approval from Bangladesh Bank and BSEC issued a 7-year unsecured, non-convertible subordinated bond of Tk.
2,500 million (face value @ Tk 1 million) in February 2015 through private placement to enhance Tier - II capital. The Bond will be
redeemed at the end of 3rd, 4th, 5th, 6th and 7th year of maturity at 20% per year. Coupon rate of the issued bonds is variable with a
floor and ceiling rate of 11.5% and 14.50% respectively. The instrument i.e. the Bond has been rated and awarded AA- by CRISL in the
long term with validity upto 28 December 2017. Although it’s a recognised component of Tier - II capital, the outstanding amount of
the Bond is shown as a borrowing as per BB guidelines/instruction. Following is the list of subscribers to this Bond:
Agrani Bank Limited 200,000,000 200,000,000 200,000,000 200,000,000
Brac Bank Limited 100,000,000 100,000,000 100,000,000 100,000,000
Janata Bank Limited 250,000,000 250,000,000 250,000,000 250,000,000
Mercantile Bank Limited 250,000,000 250,000,000 250,000,000 250,000,000
One Bank Limited 600,000,000 600,000,000 600,000,000 600,000,000
Rupali Bank Limited 600,000,000 600,000,000 600,000,000 600,000,000
Sonali Bank Limited 500,000,000 500,000,000 500,000,000 500,000,000
2,500,000,000 2,500,000,000 2,500,000,000 2,500,000,000
11.2 Borrowing from Outside Bangladesh
In non-interest bearing with:
Deutsche Trust Company Americas, USA - 44,009,757 - 44,009,757
HSBC, USA 15,740 29,063,995 15,740 29,063,995
Habib American Bank, USA 10,105,727 - 10,105,727 -
JP Morgan Chase Bank, USA - 34,307,335 - 34,307,335
Standard Chartered Bank, Sri Lanka - 623,646 - 623,646
Wells Fargo, USA - 33,183,788 - 33,183,788
10,121,467 141,188,521 10,121,467 141,188,521
Figures in Taka
Consolidated Bank
Note
2016 2015 2016 2015
In interest bearing with:
Asian Development Bank, Philippines - 392,242,308 - 392,242,308
Banca Ubae Spa, Spain - 392,501,500 - 392,501,500
Deutsche Investitions-und
2,833,279,200 3,768,014,400 2,833,279,200 3,768,014,400
Entwicklungsgesellschaft MBH (DEG)
FMO, Netherland 629,617,600 942,003,600 629,617,600 942,003,600
ICICI Bank, UAE 2,065,712,208 - 2,065,712,208 -
ICICI Bank, Hong Kong 472,213,200 1,404,103,182 472,213,200 1,404,103,182
International Finance Corporation (IFC),USA 3,148,088,000 2,355,009,000 3,148,088,000 2,355,009,000
Mashreq Bank, NY, USA 501,483,859 - 501,483,859 -
National Bank of Ras Al-Khaimah, KSA 465,580,971 - 465,580,971 -
PROPARCO, France 1,259,235,200 1,256,004,800 1,259,235,200 1,256,004,800
Standard Chartered Bank, Hong Kong 308,823,399 - 308,823,399 -
Standard Chartered Bank, Singapore 2,820,492,687 3,358,655,437 2,820,492,687 3,358,655,437
United Bank Limited, USA - 170,636,051 - 170,636,051
United Bank Limited, UAE 1,302,377,953 - 1,302,377,953 -
Wells Fargo, USA 415,522,646 - 415,522,646 -
16,222,426,923 14,039,170,278 16,222,426,923 14,039,170,278
Total 16,232,548,390 14,180,358,799 16,232,548,390 14,180,358,799
11.a Remaining maturity grouping of borrowings (including OBU)

Payable
On demand 910,098,818 991,360,176 481,572,588 -
39,369,685,979 31,534,839,615 39,061,159,750 30,543,479,439
12 Deposits and other accounts

Current deposits and other accounts etc. 12.1 16,651,527,406 15,413,733,946 16,659,952,664 15,429,365,528
Bills payable 12.2 797,002,510 910,454,248 797,002,510 910,454,248
Savings bank deposits 12.3 38,426,476,123 32,646,443,552 38,426,476,123 32,646,443,552
Fixed deposits 12.4 84,330,111,292 78,935,264,980 84,400,727,353 79,003,770,247
Bearer certificates of deposits - - - -
140,205,117,331 127,905,896,726 140,284,158,650 127,990,033,575
12.1 Current deposits and other accounts
Current deposits 12.1.1 9,782,269,814 8,043,445,928 9,790,695,072 8,059,077,510
Deposit margin on facilities (LC, LG, acceptance etc.) 12.1.2 5,177,094,793 5,506,768,075 5,177,094,793 5,506,768,075
Sundry deposits (TD redemption) - 473,959 - 473,959
Interest accrued on deposits 1,692,162,799 1,863,045,984 1,692,162,799 1,863,045,984
16,651,527,406 15,413,733,946 16,659,952,664 15,429,365,528
12.1.1 Current deposits
Local currency 7,663,524,187 7,117,011,002 7,663,524,187 7,117,011,002
Foreign currencies 2,127,170,885 942,066,508 2,127,170,885 942,066,508
9,790,695,072 8,059,077,510 9,790,695,072 8,059,077,510
Less: Inter unit/company elimination (8,425,258) (15,631,582) - -
9,782,269,814 8,043,445,928 9,790,695,072 8,059,077,510
12.1.2 Deposit margin on facilities (LC, LG, acceptance)

Margin on letter of credit 470,027,401 286,648,021 470,027,401 286,648,021
Margin on letter of guarantee 233,910,121 144,805,237 233,910,121 144,805,237
Margin on acceptance 4,473,157,271 5,075,314,817 4,473,157,271 5,075,314,817
5,177,094,793 5,506,768,075 5,177,094,793 5,506,768,075
Figures in Taka
Consolidated Bank
Note
2016 2015 2016 2015
12.2 Bills payable
Local currency 796,567,310 561,431,521 796,567,310 561,431,521
Foreign currencies 435,200 349,022,727 435,200 349,022,727
797,002,510 910,454,248 797,002,510 910,454,248
12.3 Savings bank deposits
Transactional deposit accounts:
Local currency 31,005,859,173 26,867,363,620 31,005,859,173 26,867,363,620
31,361,047,707 27,145,023,196 31,361,047,707 27,145,023,196
Scheme deposit accounts in local currency:
EBL Confidence account 3,978,395,251 3,359,031,881 3,978,395,251 3,359,031,881
EBL Secure account 39,503,175 67,414,778 39,503,175 67,414,778
EBL Child Future Plan account 398,861,870 286,398,824 398,861,870 286,398,824
EBL Millionaire Scheme 2,292,943,385 1,498,608,392 2,292,943,385 1,498,608,392
SME Equity Builder account 355,724,735 289,966,481 355,724,735 289,966,481
7,065,428,416 5,501,420,356 7,065,428,416 5,501,420,356
Total 38,426,476,123 32,646,443,552 38,426,476,123 32,646,443,552
12.4 Fixed deposits
Special Notice Deposits (SND) account 18,553,170,816 11,483,557,409 18,553,170,816 11,483,557,409
Term deposits account 65,793,951,301 67,464,919,415 65,793,951,301 67,464,919,415
RFCD account 3,889,420 4,834,277 3,889,420 4,834,277
NFCD account 49,715,816 50,459,146 49,715,816 50,459,146
84,400,727,353 79,003,770,247 84,400,727,353 79,003,770,247
Less: Inter unit/company elimination (70,616,061) (68,505,267) - -
84,330,111,292 78,935,264,980 84,400,727,353 79,003,770,247
12.a Deposits from banks-inside Bangladesh 12.a.1 297,406,250 720,581,038 297,406,250 720,581,038
Other than banks 139,907,711,081 127,185,315,687 139,986,752,400 127,269,452,536
140,205,117,331 127,905,896,726 140,284,158,650 127,990,033,575
12.a.1 Deposits from banks
Janata Bank Limited 42,311 43,169 42,311 43,169
Meghna Bank Limited 2,716,445 1,494,889 2,716,445 1,494,889
Midland Bank Limited 2,974,277 13,618,868 2,974,277 13,618,868
Modhumoti Bank Limited 5,090,385 530,769,844 5,090,385 530,769,844
National Bank Limited 156,253 156,295 156,253 156,295
National Credit and Commerce Bank Limited 504,480 - 504,480 -
NRB Bank Limited 78,799,169 141,206,095 78,799,169 141,206,095
NRB Commercial Bank Limited 3,147,348 4,963,067 3,147,348 4,963,067
One Bank Limited 703,520 539,750 703,520 539,750
Southeast Bank Limited 28,150 29,153 28,150 29,153
SBAC Bank Limited 203,241,029 27,755,975 203,241,029 27,755,975
Standard Bank Limited 2,883 3,933 2,883 3,933
297,406,250 720,581,038 297,406,250 720,581,038
12.b Deposits on the basis of significant concentration
12.b.1 Sector - wise concentration of deposits and other accounts
Government sector 977,312,960 1,512,135,580 977,312,960 1,512,135,580
Other public sector 12,309,489,204 5,276,632,472 12,309,489,204 5,276,632,472
Private sector 126,918,315,167 121,117,128,674 126,997,356,486 121,201,265,523
140,205,117,331 127,905,896,726 140,284,158,650 127,990,033,575
12.b.2 Business segment-wise concentration of deposits and other accounts
Corporate 33,083,218,548 27,814,130,596 33,162,259,867 27,898,267,445
Offshore Banking Unit (OBU) 319,899,058 162,822,173 319,899,058 162,822,173
SME 19,154,447,451 13,174,679,381 19,154,447,451 13,174,679,381
Consumer 86,850,549,764 85,843,810,329 86,850,549,764 85,843,810,329
Others - bills payables 797,002,511 910,454,247 797,002,511 910,454,247
140,205,117,332 127,905,896,726 140,284,158,651 127,990,033,575
Figures in Taka
Consolidated Bank
Note
2016 2015 2016 2015
12.c Residual maturity grouping of deposits
From banks
Payable
On demand - - - -
Within one month 297,406,250 720,581,038 297,406,250 720,581,038
In more than one month but less than six months - - - -
In more than six months but less than one year - - - -
In more than one year but within five years - - - -
In more than five years but within ten years - - - -
297,406,250 720,581,038 297,406,250 720,581,038
From other than banks
Payable
On demand 9,537,692,352 716,434,249 9,537,692,352 716,434,249
Within one month 9,463,039,689 12,327,317,679 9,471,464,947 12,411,454,528
In more than one month but less than three months 19,051,650,210 20,405,770,290 19,122,266,272 20,405,770,290
In more than three months but less than one year 33,576,136,047 36,859,123,985 33,576,136,047 36,859,123,985
In more than one year but within five years 66,048,436,312 47,520,310,620 66,048,436,312 47,520,310,621
In more than five years but within ten years 2,230,756,470 9,356,358,864 2,230,756,470 9,356,358,864
139,907,711,080 127,185,315,687 139,986,752,400 127,269,452,537
Total 140,205,117,331 127,905,896,726 140,284,158,650 127,990,033,575
Unclaimed deposit aging 10 years or more 1,481,198 2,276,824 1,481,198 2,276,824
13 Other liabilities
Privileged creditors 13.1 322,742,146 343,645,207 322,741,668 343,641,457
Acquirer liabilities 13.2 500,234,880 342,063,297 500,234,880 342,063,297
Sundry creditors 61,162,902 76,724,893 61,162,902 76,724,893
Security deposit 44,290,752 61,530,582 44,290,752 61,530,582
Current tax liabilities/(assets) 13.3 1,492,097,992 692,734,057 1,481,686,518 657,002,859
Provision for loans, advances and OBS
13.4 5,808,671,101 4,805,947,698 5,778,325,235 4,779,802,843
exposures (excluding OBU)
Provision for loans, advances and OBS exposures (OBU) 13.4.a 242,461,849 201,335,529 242,461,849 201,335,529
Interest suspense account 13.5 1,476,831,794 1,444,993,449 1,294,241,389 1,350,150,204
Provision for protested bill & other assets 13.6 11,046,380 11,937,098 11,046,380 11,384,347
Provision for non-banking assets 12,761,835 12,761,835 12,761,835 12,761,835
Provision for rebate to good borrowers 13.7 25,685,842 18,510,673 25,685,842 18,510,673
Provision for loss on revaluation of shares (net) 13.8 91,622,986 404,786,024 79,971,183 369,119,885
Advance interest/commission received 20,653,393 22,166,111 17,831,174 18,106,801
Expenses payable 401,199,336 369,351,335 386,669,340 369,351,335
Interest payable on borrowing (including OBU) 13.9 365,590,572 276,326,923 365,590,572 272,294,646
Inter branch and inter system accounts 22,446 6,056 22,446 6,056
Advance export proceeds - 464,143,909 - 464,143,909
Security value adjustment account for REPO 13.10 - 379,263,385 - 379,263,385
Miscellaneous payable 13.11 643,773,388 806,599,657 643,773,388 806,599,657
Other liabilities of subsidiaries 13.12 449,714,429 208,255,565 - -
11,970,564,023 10,943,083,283 11,268,497,353 10,533,794,193
13.1 Privileged creditors (payable to government)
Tax Deducted at Source (TDS) 123,978,187 122,088,444 123,978,187 122,088,444
VAT Deducted at Source (VDS) 32,105,804 42,927,093 32,105,326 42,923,343
Excise duty deducted from customer accounts 166,658,155 178,629,670 166,658,155 178,629,670
322,742,146 343,645,207 322,741,668 343,641,457
13.2 Acquirer liabilities
These liabilities are temporary in nature arisen from prepaid, debit and credit card transactions. Transactions are settled next day with
relevant parties and reconciled monthly. Major balance includes ‘acquirer cash’ which is a liability to relevant parties arisen due to
withdrawal of cash by EBL cardholders from Q-Cash/VISA ATMs (not owned by EBL):
Prepaid card liability 364,754,242 234,731,248 364,754,242 234,731,248
Travel card liability 19,395,398 21,040,293 19,395,398 21,040,293
Credit card liability 36,573,050 22,046,739 36,573,050 22,046,739
Debit card liability 45,014,523 39,449,687 45,014,523 39,449,687
Acquirer cash and other liabilities 34,497,667 24,795,330 34,497,667 24,795,330
500,234,880 342,063,297 500,234,880 342,063,297
Figures in Taka
Consolidated Bank
Note
2016 2015 2016 2015
13.3 Current tax liabilities/(assets)
Provision for tax
Opening balance 1,972,995,023 2,454,312,964 1,905,727,553 2,414,304,058
Settlement/adjustments for previous years (1,540,279,434) (1,826,102,383) (1,459,619,075) (1,784,135,293)
Provision for tax made during the year 13.3.1 1,830,849,042 1,344,784,441 1,773,164,131 1,275,558,787
2,263,564,631 1,972,995,022 2,219,272,609 1,905,727,552
Balance of income tax paid
Opening balance 1,280,260,965 1,378,489,806 1,248,724,693 1,343,868,144
Settlement/adjustments for previous years (1,496,568,283) (1,824,207,484) (1,459,619,075) (1,784,135,293)
Paid during the year 13.3.2 987,773,957 1,725,978,643 948,480,473 1,688,991,842
771,466,639 1,280,260,965 737,586,091 1,248,724,693
Total 1,492,097,992 692,734,057 1,481,686,518 657,002,859
13.3.1 Income tax expenses/provision for tax

Current tax expenses
Current year 1,830,782,099 1,344,762,879 1,773,164,131 1,275,558,787
Adjustment for prior year 66,943 21,562 - -
Total income tax expenses 1,830,849,042 1,344,784,441 1,773,164,131 1,275,558,787
13.3.2 Income tax paid during the year

Withholding tax deducted at source 105,480,302 116,198,638 72,676,385 88,173,372
Advance tax paid in cash 882,293,655 1,609,780,005 875,804,088 1,600,818,470
Advance income tax paid 987,773,957 1,725,978,643 948,480,473 1,688,991,842
13.4 Provision for loans, advances and OBS exposures (excluding OBU)
A) Specific provision movement
Opening balance 2,846,787,522 2,435,226,946 2,820,642,667 2,409,082,091
On fully provided debt written off during the year (1,628,588,037) (1,890,743,042) (1,628,588,037) (1,890,743,042)
On recovery of debts previously written off 380,021,967 281,710,606 380,021,967 281,710,606
Specific provision for the year 13.4.1 1,906,885,158 2,020,593,013 1,902,684,147 2,020,593,013
Provision held at the end of the year 3,505,106,610 2,846,787,523 3,474,760,744 2,820,642,668
B) General provision movement on funded

exposures
Opening balance 1,328,221,253 1,187,861,436 1,328,221,253 1,187,861,436
Provision made during the year 13.4.1 236,405,912 140,359,817 236,405,912 140,359,817
Provision held at the end of the year 1,564,627,165 1,328,221,253 1,564,627,165 1,328,221,253
C) General provision movement on non funded exposures

Opening balance 630,938,922 603,570,465 630,938,922 603,570,465
Provision made during the year 107,998,404 27,368,457 107,998,404 27,368,457
Provision held at the end of the year 13.4.1 738,937,326 630,938,922 738,937,326 630,938,922
Total provision for loans, advances and OBS
5,808,671,101 4,805,947,698 5,778,325,235 4,779,802,843
exposures (excluding OBU) (A+B+C)
13.4.a Provision for loans, advances and OBS
exposures (OBU)
General provision on funded exposures 225,636,102 177,553,977 225,636,102 177,553,977
General provision on non-funded exposures 16,825,747 23,781,552 16,825,747 23,781,552
242,461,849 201,335,529 242,461,849 201,335,529
Total provision for loans, advances and OBS
6,051,132,950 5,007,283,227 6,020,787,084 4,981,138,372
exposures (including OBU) (13.4+13.4.a)
13.4.1 Provision for loans and advances charged during the year (Bank only)
Figures in Taka
2016 (Bank Only) 2015
Main Operation OBU Total Total
General provision for UC loans & advances 236,405,912 47,478,113 283,884,025 201,443,264
General provision on off-balance sheet exposures (OBS) 107,998,404 (6,995,261) 101,003,143 41,962,728
General provision charged during the year 344,404,316 40,482,852 384,887,168 243,405,992
Specific provision charged during the year 2,282,706,114 - 2,282,706,114 2,302,303,619
Recovery from loans previously written off (380,021,967) - (380,021,967) (281,710,606)
Specific provision (net off recovery) for the year* 1,902,684,147 - 1,902,684,147 2,020,593,013
Total provision for loans and advances charged during the year 2,247,088,463 40,482,852 2,287,571,315 2,263,999,005
* Specific provision charges during the year has been presented after netting off recovery from written off loans in the current year
as per BRPD circular no. 14 dated 25 June 2003.
13.4.2 Calculation of provision for loans and advances (Bank only)
Nature Outstanding Interest Eligible Base for Required Actual Surplus /

suspense securities provision provision provision (shortage)
Standard 141,772,248,415 280,290,722 - 141,588,534,532 1,742,275,427 1,742,275,427 -
SMA 4,622,377,509 509,677,365 - 4,622,377,509 47,987,840 47,987,840 -
SS 731,150,982 45,679,163 125,325,190 587,033,563 282,557,833 282,557,833 -
DF 280,664,511 23,970,411 60,235,941 211,293,368 777,055,373 777,055,373 -
BL 3,084,191,138 434,623,727 1,103,757,700 1,760,047,537 2,415,147,537 2,415,147,537 -
Staff loan 1,593,054,982 - - - - - -
Total funded exposures 152,083,687,537 1,294,241,388 1,289,318,831 148,769,286,509 5,265,024,010 5,265,024,010 -
Off-balance sheet exposures 75,576,306,844 - - 75,576,306,844 755,763,068 755,763,068 -
Total funded & non-
227,659,994,381 1,294,241,388 1,289,318,831 224,345,593,353 6,020,787,084 6,020,787,084 -
funded exposures
Domestic banking unit (Main operation) 5,778,325,235 5,778,325,235 -
Offshore Banking Unit (OBU) 242,461,849 242,461,849 -
Total provision for loans and advances & OBS exposures 6,020,787,084 6,020,787,084 -
Consolidated Bank
Note
2016 2015 2016 2015
13.5 Interest suspense account
Opening balance 1,444,993,449 1,096,173,580 1,350,150,204 1,028,365,606
Amount transferred during the year 958,296,962 1,039,086,325 870,549,802 1,012,051,054
Amount recovered during the year (597,886,551) (440,460,239) (597,886,551) (440,460,239)
Amount written off during the year (328,572,066) (249,806,217) (328,572,066) (249,806,217)
Balance at the end of the year 1,476,831,794 1,444,993,449 1,294,241,389 1,350,150,204
Interest suspense on margin loan (extended by subsidiaries) under negative equity is included in the consolidated Interest suspense account.
13.6 Provision for protested bill & others

Opening balance 11,937,098 10,817,967 11,384,347 10,817,967
Provision made/(released) during the year 280,000 1,119,131 280,000 566,380
Adjustment made during the year (1,170,718) - (617,967) -
Balance at the end of the year 11,046,380 11,937,098 11,046,380 11,384,347
13.7 Provision for rebate to good borrowers

Opening balance 18,510,673 - 18,510,673 -
Provision made during the year 20,000,000 18,510,673 20,000,000 18,510,673
Paid during the year (12,824,831) - (12,824,831) -
Provision for rebate to the eligible good borrowers has been maintained as per Bangladesh Bank, BRPD circular no. 6 dated 19
March 2015 & BRPD circular letter no. 3 dated 16 February 2016 based on the following selection criteria:
i) Relationship with bank for last 3 years i.e. since January 2014.
ii) No past due during last 3 years i.e. since January 2014.
Figures in Taka
Consolidated Bank
Note
2016 2015 2016 2015
iii) No late servicing of quarterly interest during last 3 years.
iv) Clean CIB report against those borrowers in last 3 years i.e. 2014, 2015 & 2016.
v) Full compliance as per sanction terms.
13.8 Provision for diminution of value of quoted securities

Opening balance 404,786,024 881,850,659 369,119,885 864,261,061
Provision made/(released) during the year (313,163,038) (477,064,635) (289,148,702) (495,141,176)
Provision for diminution (gain net off) of value of quoted shares has been made as per DOS circular no. 4 dated 24 November 2011
and for mutual funds (closed-end) as per DOS circular letter no. 3 dated 12 March 2015 of Bangladesh Bank.
13.9 Interest payable on borrowing

Interest payable on borrowing (including subordinated bond) 207,705,261 190,599,748 207,705,261 186,567,471
Interest payable on borrowing-OBU 185,287,151 108,276,128 169,442,611 95,608,156
392,992,412 298,875,876 377,147,872 282,175,627
Less: Inter unit/company elimination (27,401,840) (22,548,953) (11,557,300) (9,880,981)
365,590,572 276,326,923 365,590,572 272,294,646
13.10 Security value adjustment account for REPO

This account was created by charging Profit & Loss account to reflect revaluation loss on the total portfolio of government securities
under REPO outstanding on 31.12.2015 against which due effect of mark-to-market valuation was not considered while doing
REPO. However, due adjustment was made in 2016 complying relevant instruction and circulars of BB.
13.11 Miscellaneous payable

Payable to Bangladesh Bank for sanchaypatra & WEDB 13.11.a 421,540,000 367,542,000 421,540,000 367,542,000
Unclaimed instruments 2,231,300 2,229,474 2,231,300 2,229,474
Compromise settlement of classified & written off loans 147,250,316 105,755,805 147,250,316 105,755,805
Other liabilities (FDD payable, loan & REPO
72,751,772 331,072,378 72,751,772 331,072,378
adjustment account, etc.)
643,773,388 806,599,657 643,773,388 806,599,657
13.11.a Payable to Bangladesh Bank for Sanchaypatra & WEDB

For sale of Sanchaypatra 412,140,000 362,215,000 412,140,000 362,215,000
For sale of Wage Earners Development Bond (WEDB) 9,400,000 5,327,000 9,400,000 5,327,000
421,540,000 367,542,000 421,540,000 367,542,000
13.12 Other liabilities of subsidiaries

Accounts payable (trading) 650,012,687 190,021,320
Liabilities for expenses 18,798,743 28,041,819
Bank overdraft 140,917,927 -
Provision for employee gratuity fund 2,610,194 1,157,555
812,339,551 219,220,694
Less: Intra group outstanding balances
Rent & other expenses - (6,626,831)
Share trading account (221,707,195) (4,338,298)
Bank overdraft (net off cheque in transit) (140,917,927) -
(362,625,122) (10,965,129)
Net other liabilities 449,714,429 208,255,565
As per our book (GL) As per their book (statement)

Debit (USD) Credit (USD) Debit (USD) Credit (USD)
13.a Nostro Reconciliation
Up to three months - - - -
More than three months but less than six months - - - -
More than six months but less than nine months - - - -
More than nine months but less than twelve months - - - -
More than twelve months - - - -
Total - - - -
The Bank is not required to keep provision on the unreconciled debit balance as at balance sheet date as there was no debit entry aging more than three months.
Figures in Taka
Consolidated Bank
Note
2016 2015 2016 2015
14 Share Capital
A) Authorised capital
1,200,000,000 ordinary shares of Tk. 10 each 12,000,000,000 12,000,000,000 12,000,000,000 12,000,000,000
B) Issued, subscribed and fully paid up capital

No of Shares
2016 2015
Issued against cash 129,345,000 129,345,000 1,293,450,000 1,293,450,000 1,293,450,000 1,293,450,000
Issued as bonus share 573,511,752 481,834,785 5,735,117,520 4,818,347,850 5,735,117,520 4,818,347,850
702,856,752 611,179,785 7,028,567,520 6,111,797,850 7,028,567,520 6,111,797,850
14.1 Slab-wise list as on 31 December

Pursuant to clause - Cha of the Memorandum of Association (MoA) and article - 4 of the Articles of Association (AoA) of the Bank
and clause - 4 of BCCI Reconstruction Scheme 1992, the authorised capital of the Bank is Tk. 12,000,000,000 and issued/subscribed/
fully paid up capital is Tk. 7,028,567,520 denominated by Tk. 10 per share. Detailed break up of paid up capital of Tk. 7,028,567,520
as on 31 December 2016 is as follows:
Percentage of group wise shareholdings:
2016 2015
Shareholders' group
No. of shares (%) of share holding Taka No of Shares (%) of share holding Taka
Directors 221,820,064 31.56% 2,218,200,640 192,923,886 31.57% 1,929,238,860
General Public 407,869,621 58.03% 4,078,696,210 351,754,162 57.55% 3,517,541,620
Financial Institutions 73,167,067 10.41% 731,670,670 66,501,737 10.88% 665,017,370
Total 702,856,752 100.00% 7,028,567,520 611,179,785 100.00% 6,111,797,850
A range wise distribution schedule of the above shares is given below as required by regulation 37 of the listing regulations of Dhaka Stock Exchange Limited:
Range No. of shareholders No. of shares (%) of shareholding
001-500 5,335 1,037,728 0.15%
501-5,000 3,520 6,043,613 0.86%
5,001-10,000 432 3,130,747 0.45%
10,001-20,000 244 3,399,305 0.48%
20,001-30,000 77 1,893,754 0.27%
30,001-40,000 55 1,952,969 0.28%
40,001-50,000 36 1,640,442 0.23%
50,001-100,000 90 6,242,540 0.89%
100,001-1,000,000 180 61,433,398 8.74%
1,000,001 and above 78 616,082,256 87.65%
Total 10,047 702,856,752 100.00%
Status of shareholding (shares of EBL) as on 31 December 2016 by CEO, CS, CFO, Head of Internal Control and Compliance
(HoICC) and top five salaried executives is shown in the following table:
CEO, CS, CFO & HoICC and their spouses & minor children.
No. of shares
Name Designation
(EBL) held
Ali Reza Iftekhar (with his spouse & minor children) Managing Director & CEO 168,926
Safiar Rahman (with his spouse & minor children) DMD & Company Secretary -
S M Akhtaruzzaman Chowdhury (with his spouse & minor children) SEVP & Head of ICC -
Masudul Hoque Sardar (with his spouse & minor children) SVP & Head of Finance -
Executives (Top five salaried executives other than CEO, CS, CFO & HoICC)
Hassan O. Rashid Additional Managing Director -
Akhtar Kamal Talukder DMD - Operations & IT 28,680
Ahmed Shaheen DMD & Head Corporate Banking -
M. Nazeem A. Chowdhury SEVP & Head of Consumer Banking -
Md. Abdul Hakim EVP & Head of Risk Management Division -
Shares held by any shareholder to the extent of 10% or more Nil
Figures in Taka
Consolidated Bank
Note
2016 2015 2016 2015
14.2 Capital to Risk Weighted Assets Ratio (CRAR):
Common Equity Tier-1 Capital
Paid up capital 7,028,567,520 6,111,797,850 7,028,567,520 6,111,797,850
Statutory reserve 6,991,700,268 6,111,797,850 6,991,700,268 6,111,797,850
General reserve 130,000,000 130,000,000 130,000,000 130,000,000
Dividend equalization reserve 356,040,000 356,040,000 356,040,000 356,040,000
Retained earnings 3,012,542,313 3,313,595,911 2,751,906,907 3,113,036,822
17,518,850,101 16,023,231,611 17,258,214,695 15,822,672,522
Regulatory adjustments:
Goodwill and all other intangible assets (WDV of software) (232,237,591) (197,479,889) (231,339,918) (196,302,140)
Reciprocal crossholdings in the CET1 capital (78,976,114) (45,453,818) (66,700) (45,453,818)
Investment in own CET1 capital (mutual fund) (31,409,910) - (31,409,910) -
Deferred tax assets (95% as per BB circular) (917,756,064) (893,252,033) (917,756,064) (893,252,033)
16,258,470,422 14,887,045,871 16,077,642,103 14,687,664,531
Tier -2 Capital
General provision 2,546,026,340 1,526,254,329 2,546,026,340 1,477,797,548
Subordinated debt 2,500,000,000 2,500,000,000 2,500,000,000 2,500,000,000
Revaluation reserves (50% of fixed assets & securities) 2,247,343,035 2,247,343,035 2,247,343,035 2,247,343,035
7,293,369,375 6,273,597,364 7,293,369,375 6,225,140,583
Regulatory adjustment:
Revaluation reserves for fixed assets & securities (40% in 2016 & 20% in 2015) (898,937,214) (449,468,607) (898,937,214) (449,468,607)
6,394,432,161 5,824,128,757 6,394,432,161 5,775,671,976
A. Total regulatory capital 22,652,902,583 20,711,174,628 22,472,074,264 20,463,336,507
B. Total risk weighted assets 151,468,318,161 148,775,946,731 148,811,452,933 143,706,903,468

C. Required capital based on risk weighted assets (10% on B) 15,146,831,816 14,877,594,673 14,881,145,293 14,370,690,347
D. Surplus/(deficiency) (A-C) 7,506,070,767 5,833,579,955 7,590,928,970 6,092,646,160
Capital to Risk Weighted Assets Ratio (CRAR):
Minimum requirement Consolidated Bank (Solo)
2016 2015 2016 2015 2016 2015
On Tier-1 capital to RWA 5.50% 5.50% 10.73% 10.01% 10.80% 10.22%
On Tier-2 capital to RWA Not specified Not specified 4.22% 3.91% 4.30% 4.02%
Capital to RWA ratio (CRAR) 10.00% 10.00% 14.96% 13.92% 15.10% 14.24%
Figures in Taka
Consolidated Bank
Note
2016 2015 2016 2015
15 Statutory reserve
Opening balance 6,111,797,850 6,111,797,850 6,111,797,850 6,111,797,850
Transferred from profit during the year 879,902,418 - 879,902,418 -
Closing balance 6,991,700,268 6,111,797,850 6,991,700,268 6,111,797,850
16 Dividend equalisation reserve

As per BRPD circular no. 18 dated 20 October 2002, banks are required to transfer an equal amount of net profit (amount by
which cash dividend exceeds 20%) to dividend equalisation reserve while paying cash dividend in excess of 20%. This is treated as
`Common Equity Tier-1 (CET1)’ of the Bank.
17 Excess of reserve over pre-take over loss-BCCI
Reserve against pre take-over loss 17.1 1,554,759,750 1,554,759,750 1,554,759,750 1,554,759,750
Pre take-over loss 17.2 (936,967,519) (936,967,519) (936,967,519) (936,967,519)
617,792,231 617,792,231 617,792,231 617,792,231
17.1 Reserve against pre-takeover loss-BCCI

This represents the amount deducted from depositors and other accounts of customers of erstwhile BCCI branches in Bangladesh under
clause 11(3) of the Scheme. In accordance with clause 14 of the Scheme, a one-time review of recovery status against BCCI assets was
carried out in 1997 by Rahman Rahman Huq, Chartered Accountants. Consequentially, it was decided that in view of the shortage in
target recover under the scheme, no payment is to be made to BCCI depositors on account of blocked deposit of EBL (note 17.2).
17.2 Pre-take over loss-BCCI
It represents the difference between BCCI assets and liabilities (excluding reserve) with assets in the higher side as on the reporting date.
Opening balance (936,967,519) (968,228,719) (936,967,519) (968,228,719)
Recovery/(adjustment) during the year - 31,261,200 - 31,261,200
Closing balance (936,967,519) (936,967,519) (936,967,519) (936,967,519)
18 Assets revaluation reserve (land only)
Opening balance 2,534,874,738 3,689,495,550 2,534,874,738 3,689,495,550
Adjustment for impairment made during the year - (1,154,620,812) - (1,154,620,812)
Closing balance 2,534,874,738 2,534,874,738 2,534,874,738 2,534,874,738
This revaluation reserve is made against lands only. In reality, buyers bear the tax on behalf of sellers at the time of land registration and
taxes paid at the time of land registration are final discharge of related tax liability of the seller (bank). Hence, no deferred tax liability
has been recognised on land revaluation reserve of the bank. There is no other material temporary timing difference in classified assets/
liabilities for which deferred tax asset/liability is required to be accounted for in the year.
19 Reserve for amortisation of treasury securities (HTM)
Opening balance 2,764,446 2,076,822 2,764,446 2,076,822
Addition during the year 3,436,541 811,462 3,436,541 811,462
Adjustment made during the year - (123,838) - (123,838)
Closing balance 6,200,987 2,764,446 6,200,987 2,764,446
As per instruction/circular of Bangladesh Bank vide DOS circular Letter No 05 dated 26 May 2008 and subsequent clarifications on 28 January 2009.
20 Reserve for revaluation of treasury securities (HFT)
Opening balance 1,374,979,476 805,190,521 1,374,979,476 805,190,521
Addition during the year 734,040,896 3,284,537,390 734,040,896 3,284,537,390
Adjustment made during the year (2,096,874,864) (2,714,748,434) (2,096,874,864) (2,714,748,434)
Closing balance 12,145,508 1,374,979,477 12,145,508 1,374,979,477
*As per instruction/circular of Bangladesh Bank vide DOS circular letter no. 5 dated 26 May 2008 and subsequent clarifications on
28 January 2009.
21 Reserve against non-banking assets
Opening balance 141,288,665 178,971,165 141,288,665 178,971,165
Adjustment made during the year - (37,682,500) - (37,682,500)
Closing balance 141,288,665 141,288,665 141,288,665 141,288,665
Figures in Taka
Consolidated Bank
Note
2016 2015 2016 2015
22 Foreign currency translation difference
Assets and liabilities of EBL Offshore Banking Unit and EBL Finance (HK) Ltd. have been presented into Taka (which is the functional
currency of the Bank) using year-end standard mid rate of exchange of the Bank @ USD 1 = BDT 78.7022 and HKD 1 = BDT 10.1486.
Yearly incomes and expenses are translated using monthly average exchange rate (USD 1 = BDT 78.4587 & HKD 1 = BDT 10.1499).
The net cumulative result of the exchange differenes has been presented separately as equity component as per BAS 21 (para 39).
23 Surplus in profit and loss account

Opening balance 3,313,595,911 2,252,684,630 3,113,036,822 2,113,887,906
Profit for the year (excluding dividend from subsidiaries) 2,716,335,721 2,282,608,953 2,515,569,839 2,120,529,105
Transfer to statutory reserve (879,902,418) - (879,902,418) -
Bonus share issued (916,769,670) - (916,769,670) -
Cash dividend paid (1,222,359,570) (1,222,359,570) (1,222,359,570) (1,222,359,570)
Currency adjustment for offshore 1,642,339 661,898 1,414,917 592,284
Dividend received from subsidiaries - - 140,916,987 100,387,097
Closing balance 3,012,542,313 3,313,595,911 2,751,906,907 3,113,036,822
24 Contingent liabilities
Acceptances and endorsements 24.1 32,666,382,402 29,367,215,759 32,666,382,402 29,367,215,759
Letters of guarantees 24.2 15,905,357,265 13,233,474,177 15,905,357,265 13,233,474,177
Irrevocable letters of credit 24.3 17,720,419,522 17,203,519,865 17,720,419,522 17,203,519,865
Bills for collection 24.4 5,836,991,295 5,667,837,422 5,836,991,295 5,667,837,422
72,129,150,484 65,472,047,223 72,129,150,484 65,472,047,223
24.1 Acceptances and endorsements
Acceptances 7,483,698,187 7,154,625,116 7,483,698,187 7,154,625,116
Acceptances - (ULC-Cash) 24,474,319,796 21,505,066,757 24,474,319,796 21,505,066,757
31,958,017,983 28,659,691,873 31,958,017,983 28,659,691,873
Acceptances - Offshore Banking Unit (OBU) 708,364,419 707,523,886 708,364,419 707,523,886
Total 32,666,382,402 29,367,215,759 32,666,382,402 29,367,215,759
24.2 Letters of guarantees
Directors 192,900 192,900 192,900 192,900
Government 477,209,527 475,998,127 477,209,527 475,998,127
Banks and other financial institutions 8,438,836,229 7,087,933,572 8,438,836,229 7,087,933,572
Others (Customers etc.) 6,989,118,609 5,629,353,675 6,989,118,609 5,629,353,675
15,905,357,265 13,193,478,274 15,905,357,265 13,193,478,274
Letters of guarantee-Offshore Banking Unit - 39,995,903 - 39,995,903
Total 15,905,357,265 13,233,474,177 15,905,357,265 13,233,474,177
24.2.a A case was filed at Artha Rin Adalat - 3, Dhaka by Eastern Bank Limited (EBL), successor of BCCI Overseas Limited, against National
Bank Limited (NBL) for issuing guarantee which had been decreed against NBL on 4 January 2004 for Tk. 27,366,450 plus interest @
18% p.a. amounting to Tk. 45,565,139 (from 1 October 1994 to 31 December 2003) making an aggregate amount of Tk. 72,931,589.
Against the decreed amount, NBL made an appeal against the order which was dismissed on 14 July 2014 in favor of EBL by the
Honorable High Court, Dhaka. Before filing the appeal NBL had paid Tk. 13,683,225 to the court being 50% of the principal decreed
amount. Again, NBL has filed an appeal on 30 July 2015 in the Honorable Supreme Court, Dhaka against the judgment passed by
the Honorable High Court, Dhaka. After hearing both the parties the honorable Appellate Division of the Supreme Court passed
judgment on 19 May 2016 in favor of EBL, thereafter NBL filed a review petition against the said judgment in the Appellate Division
which is pending for hearing.
24.3 Irrevocable letters of credit
Letters of credit (LC) - cash sight 3,139,080,353 5,695,113,129 3,139,080,353 5,695,113,129
Letters of credit (LC) - cash usance 10,026,411,174 6,714,101,765 10,026,411,174 6,714,101,765
Letters of credit (LC) - back to back 4,249,818,359 4,119,029,778 4,249,818,359 4,119,029,778
17,415,309,886 16,528,244,672 17,415,309,886 16,528,244,672
Letters of credit (LC) - cash sight-OBU 59,453,303 121,673,557 59,453,303 121,673,557
Letters of credit (LC) - cash usance-OBU 245,656,333 553,601,636 245,656,333 553,601,636
Total 17,720,419,522 17,203,519,865 17,720,419,522 17,203,519,865
Figures in Taka
Consolidated Bank
Note
2016 2015 2016 2015
24.4 Bills for collection
Bills for collection (LC) 587,124,253 2,266,597,200 587,124,253 2,266,597,200
Bills for collection (sales contract) 3,046,563,897 2,199,117,469 3,046,563,897 2,199,117,469
Margin on bills purchase - document 1,534,202,513 246,762,577 1,534,202,513 246,762,577
5,167,890,663 4,712,477,246 5,167,890,663 4,712,477,246
Bills for collection - Offshore Banking Unit (OBU) 669,100,632 955,360,176 669,100,632 955,360,176
5,836,991,295 5,667,837,422 5,836,991,295 5,667,837,422
25 Interest income
Interest on advances 13,231,395,703 12,985,958,873 12,940,663,584 12,648,200,540
Interest on money at call and short notice 18,096,272 53,003,522 18,096,272 53,003,522
Interest on placement with banks and financial institutions 804,335,392 929,601,681 802,978,505 912,451,222
Interest on foreign currency balances 14,619,198 732,120 14,619,198 732,120
14,068,446,565 13,969,296,196 13,776,357,559 13,614,387,404
Less: Elimination of inter unit/company transactions (405,816,681) (352,918,328) (230,719,386) (276,199,512)
13,662,629,884 13,616,377,868 13,545,638,173 13,338,187,892
26 Interest paid on deposits and borrowings etc.

Interest on deposits 26.1 6,370,814,546 8,187,703,942 6,370,814,546 8,187,703,942
Interest on borrowings from banks & FIs 26.2 1,824,034,849 1,842,192,912 1,609,761,223 1,624,960,823
Interest on borrowings from BB & others 26.3 264,591,647 252,448,334 264,591,647 252,448,334
Interest on margin 1,773,660 4,216,300 1,773,660 4,216,300
8,461,214,702 10,286,561,488 8,246,941,076 10,069,329,399
Less: Elimination of inter unit/company transactions (405,816,681) (352,918,328) (230,719,386) (276,199,512)
8,055,398,021 9,933,643,160 8,016,221,690 9,793,129,887
26.1 Interest on deposits
Interest on savings deposits 1,448,506,506 1,569,180,413 1,448,506,506 1,569,180,413
Interest on short notice deposits 489,180,072 792,075,491 489,180,072 792,075,491
Interest on term deposits 4,433,127,968 5,826,448,038 4,433,127,968 5,826,448,038
6,370,814,546 8,187,703,942 6,370,814,546 8,187,703,942
26.2 Interest on borrowings from banks & FIs
Interest on demand borrowing 367,878,193 314,421,946 153,604,567 149,367,144
Interest on term borrowing 1,059,257,070 1,049,301,971 1,059,257,070 997,124,684
Interest on subordinated bond 288,287,669 248,904,108 288,287,669 248,904,108
Inter bank REPO (repurchase agreement) 108,611,917 229,564,887 108,611,917 229,564,887
1,824,034,849 1,842,192,912 1,609,761,223 1,624,960,823
26.3 Interest on borrowings from BB & others

Repo with BB under ALS - 4,213,357 - 4,213,357
Borrowing under IPFF 15,135,962 26,337,820 15,135,962 26,337,820
Borrowing under EDF 111,227,827 82,940,853 111,227,827 82,940,853
Borrowing under LTFF 8,311,766 - 8,311,766 -
Refinancing for agrobased Industries 28,995,770 33,589,283 28,995,770 33,589,283
Refinancing agribusiness - revolving 67,683,456 72,665,658 67,683,456 72,665,658
Second crop diversification project 31,090,755 31,005,807 31,090,755 31,005,807
Borrowing from SME Foundation 2,146,111 1,695,556 2,146,111 1,695,556
264,591,647 252,448,334 264,591,647 252,448,334
27 Investment income
Dividend Income:
Ordinary shares (other than dividend from subsidiaries) 86,874,382 51,190,484 50,606,240 31,631,075
Dividend from subsidiaries - - 140,916,987 100,387,097
86,874,382 51,190,484 191,523,227 132,018,172
Interest on reverse REPO 2,742,844 48,506,742 2,742,844 48,506,742
Interest on commercial paper 15,513,397 34,052,309 15,513,397 34,052,309
Figures in Taka
Consolidated Bank
Note
2016 2015 2016 2015
Interest on corporate bonds 56,707,763 33,079,338 56,707,763 33,079,338
Interest on treasury bonds 2,376,842,600 2,963,372,446 2,376,842,600 2,963,372,446
Interest on govt. treasury/Bangladesh Bank bills 12,325,391 65,654,766 12,325,391 65,654,766
Gain (net off loss) from trading in govt. securities 1,034,383,672 1,281,266,131 1,034,383,672 1,281,266,131
Loss on revaluation of treasury securities (HFT)* (221,775,032) (703,410,416) (221,775,032) (703,410,416)
Loss (gain net off) on sale of quoted securities (101,730,017) (239,105,024) (152,831,585) (278,169,160)
3,261,885,000 3,534,606,776 3,315,432,277 3,576,370,328
*As per instruction/circular of Bangladesh Bank vide DOS circular letter No. 5 dated 26 May 2008 and subsequent clarifications on
28 January 2009.
28 Commission, exchange and brokerage

Fees, commission and charges 28.1 1,839,651,823 1,774,070,403 1,777,845,899 1,746,719,450
Exchange gain (net off exchange loss) 28.2 673,600,321 883,874,726 671,399,915 882,711,477
Brokerage 28.3 124,287,068 89,289,415 - -
2,637,539,212 2,747,234,544 2,449,245,814 2,629,430,927
28.1 Fees, commission and charges:

Loan processing fees 314,927,012 301,272,120 314,927,012 301,272,120
Service charges (periodic & adhoc) 308,471,153 313,312,344 272,198,016 285,961,391
Early settlement fees 49,140,188 30,502,020 49,140,188 30,502,020
Cards fees & charges (net off directly associated 28.1.a 444,288,757 457,975,324 444,288,757 457,975,324
cards expenses)
Commission on general banking (PO, FDD, 85,896,492 58,414,281 85,896,492 58,414,281
remittance, etc)
Commission on trade business (LG, LC, acceptance) 636,928,221 612,594,314 611,395,434 612,594,314
1,839,651,823 1,774,070,403 1,777,845,899 1,746,719,450
28.1.a Cards fees & charges (net off directly associated cards expenses)
Cards fees & charges:
Fees & charges (debit & prepaid card) 73,990,374 95,652,769 73,990,374 95,652,769
Credit Card: -
Annual fees 111,126,692 105,857,166 111,126,692 105,857,166
Late payment & overlimit fees 158,061,765 146,990,782 158,061,765 146,990,782
Cash advance fees 19,470,327 18,800,960 19,470,327 18,800,960
Interchange reimbursement (IRF) & acquiring fees 104,719,270 83,581,294 104,719,270 83,581,294
Risk assurance premium 77,162,108 76,705,456 77,162,108 76,705,456
Merchant service commission 19,713,884 4,283,496 19,713,884 4,283,496
Card cheque fees (processing & issue) 69,976,221 100,830,682 69,976,221 100,830,682
Replacement fees & others 10,358,939 4,472,167 10,358,939 4,472,167
644,579,580 637,174,772 644,579,580 637,174,772
Cards direct expenses

Membership & priority pass 87,287,920 89,327,716 87,287,920 89,327,716
Acquiring & IRF charges 36,022,276 13,941,178 36,022,276 13,941,178
Insurance expense 53,169,740 47,334,212 53,169,740 47,334,212
Other service charges (ATM card usage, cash back etc) 23,810,887 28,596,342 23,810,887 28,596,342
200,290,823 179,199,448 200,290,823 179,199,448
Total cards fees & charges (net) 444,288,757 457,975,324 444,288,757 457,975,324
Figures in Taka
Consolidated Bank
Note
2016 2015 2016 2015
28.2 Exchange gain (net off exchange loss)
Gain on exchange trading (other than cards business) 1,419,891,780 1,686,759,170 1,384,798,090 1,681,720,287
Less: Exchange loss 791,280,104 835,102,421 758,386,820 831,226,787
628,611,676 851,656,749 626,411,270 850,493,500
Exchange gain from cards business 64,237,913 44,695,803 64,237,913 44,695,803
Less: Exchange loss 19,249,268 12,477,826 19,249,268 12,477,826
44,988,645 32,217,977 44,988,645 32,217,977
Total 673,600,321 883,874,726 671,399,915 882,711,477
28.3 Brokerage commission

Brokerage commission (DSE & CSE) 126,280,572 89,844,542
Brokerage commission (dealer) 5,251,658 3,611,284
Settlement commission 9,784,901 11,590,689
141,317,131 105,046,515
Less: Direct expenses
Laga & howla charges 10,921,187 7,528,196
CDBL charges 6,108,876 8,228,904
17,030,063 15,757,100
Total 124,287,068 89,289,415
29 Other operating income

Rebate earnings 57,397,169 54,132,824 57,397,169 54,132,824
Postage charges recovered 28,104,652 19,499,460 14,313,862 7,858,612
Swift charges recovered 56,253,365 58,205,542 56,253,365 58,205,542
Service charges (others) 9,887,729 32,891,651 6,990,639 1,916,394
Locker rent 14,970,400 13,431,810 14,970,400 13,431,810
Gain on sale of fixed assets 1,874,527 5,268,895 1,874,527 4,482,993
Other earnings 13,126,950 6,556,097 13,126,950 4,815,297
181,614,792 189,986,279 164,926,912 144,843,472
Commission, fees and charges received against export and export related services are VAT exempted as per service code S056 of SRO
188-AIN/2012/646-MUSHAK dated 7 June 2012.
30 Salary & allowances (except those of MD)
Basic salary 921,027,247 791,072,072 875,770,553 753,175,675
Other salary & allowances 1,327,624,085 1,283,676,181 1,302,040,285 1,263,552,338
Festival bonus 153,116,041 126,380,040 149,527,037 126,380,040
Performance bonus 245,378,221 206,154,594 239,000,000 199,000,000
Bank's contribution to provident fund 84,388,689 72,625,447 84,388,689 72,625,447
Contribution to gratuity fund 30.1 133,789,130 131,424,545 132,231,491 131,424,545
Contribution to superannuation fund 30.2 17,880,000 14,583,596 17,880,000 14,583,596
2,883,203,413 2,625,916,475 2,800,838,055 2,560,741,641
*The number of regular employees engaged for the whole year or part thereof who received a total remuneration of BDT 36,000 p.a.
or above were 1,584 at the end of December 2016 as against 1,577 at the end of December 2015.
30.1 Contribution to gratuity fund
Contribution to gratuity fund is made as per actuarial valuation of the fund. Valuation is carried out on ‘Projected unit credit method’
as recommended by BAS 19 ‘Employee benefits’. Under this method the valuation is done considering both ‘future service cost’ which
an employee shall obtain in normal course of service and ‘past service cost’ which is the difference between assets built up from past
contributions and accrued liabilities (i.e. benefits earned by members as a result of service as of valuation date).
The latest valuation was carried out on 30 September 2015 which was effective from 1 October 2015. The actuary recommended that
the bank will continue to contribute at least 14.90% of basic salary into the fund each year until the next actuarial review is done. The
bank is maintaining recommended contribution from the effective date.
Figures in Taka
Consolidated Bank
Note
2016 2015 2016 2015
Calculation of service cost as per actuarial valuation: Rate
(% of basic salary)
Current service cost 9.10%
Past service cost 5.80%
14.90%
30.1.a Contribution to Gratuity fund during the year

Required contribution for the year (14.90% on basic salary) 132,231,491
Maintained during the year 132,231,491
Surplus/(shortage) -
Surplus / (Deficit)
30.2 Contribution to superannuation fund

Contribution to superannuation fund is made as per actuarial valuation of the fund. Valuation is carried out on ‘projected unit credit
method’ as per BAS 19 ‘Employee benefits’ to determine the present value of obligations and the related current service cost and,
where applicable past service cost. The amount of obligation is determined on the occurrence of certain pre-defined events which is
related with employee rank (not salary) and certain threshold level of service being reached i.e. survival or withdrawal probabilities.
The latest valuation was carried out on 30 September 2015 which was effective from 1 October 2015. The actuary recommended a
contribution of at least Tk. 1.49 million per month into the fund until the next actuarial investigation is carried out.
30.2.a Contribution to superannuation fund during the year

Required contribution for the year 17,880,000
Maintained during the year 17,880,000
Surplus/(shortage) -
31 Rent, taxes, insurance, electricity, etc.

Rents, rates and taxes - premises & equipments 461,068,443 420,540,276 444,635,867 405,011,665
Insurance premium* 91,075,317 100,090,931 90,984,259 100,013,120
Utilities (except telecommunication) 103,280,621 102,268,497 100,189,782 99,839,368
655,424,381 622,899,704 635,809,908 604,864,153
Insurance premium covers property, cash, staff HBL and customer deposits up to certain threshold. In 2016, an amount of Tk. 78
million was paid to Bangladesh Bank as Deposit Insurance premium @ 0.08% on certain prescribed demand & time liabilities as per
DOS circular letter no. 1 dated 10 January 2007 and circular no. DID-02/2012 dated 2 October 2012 of Bangladesh Bank.
32 Legal & professional expenses
Professional fees (consultancy, advisory, certification, etc.) 32,223,765 19,595,049 31,878,675 18,667,833
Professional fees (loan recovery & contact point verification) 24,045,110 10,775,280 24,045,110 10,775,280
Lawyers' professional fees 16,836,482 17,154,574 16,197,407 17,154,574
Other legal expenses (court expense, auction notice, etc.) 37,715,725 57,652,231 37,600,524 57,652,231
110,821,082 105,177,134 109,721,716 104,249,918
33 Postage, stamp, telecommunication, etc.

Telephone - office 42,545,325 38,448,230 42,297,303 38,208,155
Network link, internet, swift and DR maintenance cost 61,029,696 57,684,871 58,658,590 55,703,700
Postage & courier charges 31,299,118 29,858,989 28,035,680 26,445,783
Stamp & court fees 9,575,398 7,510,430 9,561,980 7,509,666
144,449,537 133,502,520 138,553,553 127,867,304
34 Stationery, printing, advertisements, etc.

Printing and stationery 78,681,342 85,007,275 77,253,758 83,294,492
Advertisement 55,360,633 83,053,702 54,757,706 82,415,589
Business promotional expenses 168,454,423 115,849,551 167,368,683 115,849,551
302,496,398 283,910,528 299,380,147 281,559,632
Figures in Taka
Consolidated Bank
Note
2016 2015 2016 2015
35 Managing Director's salary and allowances (Bank only)
Basic salary 11,747,097 10,920,516 11,747,097 10,920,516
Allowances 4,523,387 4,380,000 4,523,387 4,380,000
Bonus 2,968,000 2,848,000 2,968,000 2,848,000
Bank's contribution to provident fund 1,174,710 1,092,052 1,174,710 1,092,052
20,413,194 19,240,568 20,413,194 19,240,568
36 Directors' fees
Meeting attendance fees 2,209,150 1,813,355 2,014,800 1,671,905
Other expenses (refreshment, conveyance etc.) 1,754,327 2,254,835 1,754,327 2,254,835
3,963,477 4,068,190 3,769,127 3,926,740
Each director of the Bank is provided for Tk. 8,000 per board or board committee meeting attended in 2016 as per BRPD circular
letter no. 11 dated 4 October 2015.
37 Auditor's fees
Statutory audit fees for the year 1,465,791 1,221,233 700,000 500,000
VAT on audit fees @ 15% 132,783 83,250 105,000 75,000
1,598,574 1,304,483 805,000 575,000
38 Depreciation and repair of the Bank’s assets

Depreciation*
Buildings 18,271,417 18,271,137 18,271,417 18,271,137
Machinery and equipment 67,160,637 99,989,651 66,293,898 99,305,915
Computer and network equipment 68,452,461 52,379,606 67,934,602 51,480,690
Vehicles 16,796,654 14,821,724 16,169,028 14,442,791
Furniture and fixtures & leased assets 35,186,648 36,069,043 33,735,089 34,426,315
Software 60,544,418 49,758,002 60,079,443 49,314,706
266,412,235 271,289,163 262,483,477 267,241,554
Repair of the Bank's assets
Machinery & equipments 75,884,489 64,931,286 75,456,704 64,694,777
Vehicles 9,754,885 9,006,996 9,754,885 9,006,996
Furniture and fixtures 13,832,733 22,582,152 13,832,733 22,582,152
Rented premises - general 47,159,205 47,919,816 45,518,856 46,908,944
Rented premises - electricity & lighting 20,422,356 25,790,338 20,422,356 25,790,338
Software maintenance 69,764,055 66,731,877 69,251,587 66,165,409
236,817,723 236,962,465 234,237,121 235,148,616
Total 503,229,958 508,251,628 496,720,598 502,390,170
*Details of depreciation are presented in Annexure-A
39 Other expenses
Business travelling & conveyance 61,382,012 60,439,957 60,769,873 60,114,957
Bank charges 66,428,902 58,139,223 65,793,112 57,726,341
Cards production cost 31,761,624 20,349,209 31,761,624 20,349,209
Donation (including CSR) 40,869,819 37,600,034 40,758,170 37,564,700
Fees and subscriptions 4,074,078 4,416,476 3,962,099 4,310,835
Recruitment and training expenses 19,114,240 26,230,652 17,899,658 25,656,452
Entertainment & recreation 62,331,720 69,764,066 59,564,443 67,151,447
Office securities (cash carrying, office premises etc.) 121,082,779 128,659,278 120,461,779 128,103,828
Reward & recognition 6,142,414 4,019,510 6,142,414 4,019,510
Sales & collection commission (DST, agency, dealers) 107,883,012 68,595,972 107,883,012 67,567,629
Expense for EBL subordinated bond 3,629,643 4,091,740 3,629,643 4,091,740
AGM expenses 2,440,578 2,595,955 2,440,578 2,595,955
Other operating expenses (uniform, freight, books, shares etc) 13,746,879 7,274,582 13,729,078 6,544,462
Other expenses of subsidiaries 39.1 5,847,967 4,076,185 - -
546,735,667 496,252,839 534,795,483 485,797,065
Figures in Taka
Consolidated Bank
Note
2016 2015 2016 2015
39.1 Other expenses of subsidiaries
CDBL charges 640,533 652,306
Registration & renewal 2,753,366 945,146
Guarantee premium 1,725,000 1,725,000
Deferred revenue expenses (written off) 25,000 61,194
Other administration expenses 704,068 692,539
5,847,967 4,076,185
Expenses incurred by the bank shown in these financial statements are inclusive of VAT where applicable as per VAT Act 1991.
40 Other provision
Provision charged/(released) for protested bill & others 13.6 280,000 1,119,131 280,000 566,380
Provision for rebate to good borrowers 13.7 20,000,000 18,510,673 20,000,000 18,510,673
Provision (released) on revaluation (or sale) of 13.8 (313,163,038) (477,064,635) (289,148,702) (495,141,176)
quoted securities
(292,883,038) (457,434,831) (268,868,702) (476,064,123)
41 Provision for taxation/Income tax expenses

Current tax expenses 1,830,849,042 1,344,784,441 1,773,164,131 1,275,558,787
Deferred tax (income)/expenses 41.1 (30,138,865) (79,919,330) (30,138,865) (79,919,330)
1,800,710,177 1,264,865,111 1,743,025,266 1,195,639,457
41.1 Deferred tax income (net)

Deferred tax income in charging specific provision 9.12.a (25,793,717) (74,502,222) (25,793,717) (74,502,222)
Deferred tax (income)/expense in WDV of FA 9.12.b (4,345,148) (5,417,108) (4,345,148) (5,417,108)
(30,138,865) (79,919,330) (30,138,865) (79,919,330)
2016 2015
% Taka % Taka
41.a Reconciliation of effective tax rate (Bank only)
Profit before income tax as per profit and loss account 4,399,512,092 3,416,555,659
Income tax as per applicable tax rate 40.00% 1,759,804,837 40.00% 1,366,622,264
Factors affecting the tax charge for current year
Non deductible expenses 8.35% 367,371,009 4.83% 164,855,391
Tax exempt income -7.39% (325,043,456) -6.77% (231,142,286)
Tax savings from reduced tax rates for dividend -0.87% (38,304,646) -0.77% (26,403,634)
Tax loss/(savings) from reduced tax rates for capital gain 1.39% 61,132,634 3.26% 111,267,664
Prior year adjustment (due to reduction of tax
- - -3.21% (109,640,611)
rate from 42.5% to 40.0%)
Prior year adjustment (for increasing excess perquisite
-1.18% (51,796,247) - -
threshold from 0.35 million to 0.45 million in 2014)
Deferred tax income (net) -0.69% (30,138,865) -2.34% (79,919,330)
Total income tax expenses 39.62% 1,743,025,267 35.00% 1,195,639,457
Consolidated Bank
Note
2016 2015 2016 2015
42 Earnings Per Share (EPS) (Restated)

Earnings Per Share (EPS) has been computed by dividing the Profit After Tax (PAT) by the weighted average number of ordinary
shares outstanding as on 31 December 2016 as per BAS 33 ‘Earnings per share’. Diluted earnings per share was not required to
calculate as there were no dilution possibilities during the year.
Number of shares before bonus share issued in 2016 611,179,785 611,179,785 611,179,785 611,179,785
Bonus shares issued in 2016 91,676,967 91,676,967 91,676,967 91,676,967
Number of ordinary shares outstanding (restated): 702,856,752 702,856,752 702,856,752 702,856,752
Net profit attributable to the shareholders of EBL 2,716,335,721 2,282,608,953 2,656,486,826 2,220,916,202
Weighted average number of shares 702,856,752 702,856,752 702,856,752 702,856,752
Earnings Per Share (EPS) (restated) 3.86 3.25 3.78 3.16
Figures in Taka
Consolidated Bank
Note
2016 2015 2016 2015
43 Changes in other assets (cash flows item)
Opening balance:
TREC of DSE (membership license) 553,800,000 553,800,000 - -
TREC of CSE (membership license) 201,500,000 201,500,000 - -
Receivable from subsidiaries - - 6,626,831 50,935,416
Stamps on hand 3,276,242 2,912,441 3,234,292 2,912,441
Advance to staff for expenses 2,401,000 757,052 2,401,000 757,052
Interest and dividend receivables 987,521,370 873,179,098 1,022,701,957 871,072,093
Sundry receivables 657,431,871 444,641,968 657,431,871 444,641,968
Advance rent 274,353,565 321,069,492 270,889,357 319,005,678
Deferred tax assets 906,971,909 827,052,579 906,971,909 827,052,579
Other assets of subsidiaries 11,124,715 36,503,227 - -
4,212,281,676 3,663,824,404 3,474,780,652 2,918,211,885
Closing Balance:
TREC of DSE (membership license) 553,800,000 553,800,000 - -
TREC of CSE (membership license) 201,500,000 201,500,000 - -
Receivable from subsidiaries - - 213,833,968 6,626,831
Stamps on hand 3,382,597 3,276,242 3,371,397 3,234,292
Advance to staff for expenses 1,484,658 2,401,000 1,484,658 2,401,000
Interest and dividend receivables 628,557,273 987,521,370 776,972,930 1,022,701,957
Sundry receivables 480,080,667 657,431,871 443,006,103 657,431,871
Advance rent 309,150,611 274,353,565 306,458,786 270,889,357
Deferred tax assets 937,110,774 906,971,909 937,110,774 906,971,909
Other assets of subsidiaries 243,633,584 11,124,715 - -
4,032,882,402 4,212,281,676 3,355,554,437 3,474,780,652
Adjustment for other non cash items (1,226,601,904) 164,634,472 (1,223,178,258) 177,901,170
Net cash changes in other assets (1,047,202,631) (383,822,800) (1,103,952,042) (378,667,597)
44 Changes in other liabilities (cash flows item)

Opening balances
Privileged creditors 343,645,207 286,783,691 343,641,457 286,783,691
Acquirer liabilities 342,063,298 277,304,749 342,063,298 277,304,749
Current tax liabilities/(assets) 692,734,058 1,075,823,159 657,002,859 1,070,435,914
Provision for loans, advances and OBS
4,805,947,696 4,226,658,845 4,779,802,842 4,200,513,991
exposures (excluding OBU)
Provision for loans, advances and OBS exposures (OBU) 201,335,529 124,242,089 201,335,529 124,242,089
Interest suspense account 1,444,993,448 1,096,173,580 1,350,150,203 1,028,365,606
Provision for protested bill & others 11,937,095 10,817,967 11,384,347 10,817,967
Provision for rebate to good borrowers 18,510,673 - 18,510,673 -
Provision for loss on revaluation of shares (net) 404,786,025 881,850,659 369,119,885 864,261,060
Interest payable on borrowing including OBU 276,326,923 172,093,093 272,294,646 161,341,205
Figures in Taka
Consolidated Bank
Note
2016 2015 2016 2015
Advance export proceeds 464,143,909 325,458,711 464,143,909 325,458,711
Security value adjustment for REPO 379,263,385 - 379,263,385 -
Miscellaneous payable 806,599,658 408,767,828 806,599,658 408,767,828
Other liabilities of subsidiaries 197,261,925 269,898,024 - -
10,943,083,281 9,622,255,147 10,533,794,193 9,221,996,543
Miscellaneous payable
Closing balances
Privileged creditors 322,742,145 343,645,207 322,741,667 343,641,457
Acquirer liabilities 500,234,880 342,063,298 500,234,880 342,063,298
Current tax liabilities/(assets) 1,490,204,266 692,734,058 1,479,792,791 657,002,859
Provision for loans, advances and OBS exposures (excluding OBU) 5,808,671,100 4,805,947,696 5,778,325,235 4,779,802,842
Provision for loans, advances and OBS exposures (OBU) 242,461,849 201,335,529 242,461,849 201,335,529
Interest suspense account 1,476,831,793 1,444,993,448 1,294,241,388 1,350,150,203
Provision for protested bill & others 11,046,380 11,937,095 11,046,380 11,384,347
Provision for rebate to good borrowers 25,685,842 18,510,673 25,685,842 18,510,673
Provision for loss on revaluation of shares (net) 91,622,986 404,786,025 79,971,182 369,119,885
Interest payable on borrowing including OBU 365,590,573 276,326,923 365,590,573 272,294,646
Advance export proceeds - 464,143,909 - 464,143,909
Security value adjustment for REPO - 379,263,385 - 379,263,385
Miscellaneous payable 643,773,389 806,599,658 643,773,389 806,599,658
Other liabilities of subsidiaries 449,714,429 197,261,925 - -
11,968,670,296 10,943,083,281 11,266,603,625 10,533,794,193
Adjustment for other non cash items (190,047,903) (40,762,987) (184,642,055) (40,762,987)
Net cash changes in other liabilities 835,539,112 1,280,065,147 548,167,377 1,271,034,663
45 Events after the reporting period

The Board of Directors of Eastern Bank Limited recommended 25% dividend ( 20% cash and 5% stock) in 597th board meeting held
on 20 March 2017 for the income year 2016. Eligible shareholders (who holds EBL shares on the record date i.e. 11 April 2017) will
be entitled to get this dividend subject to shareholders’ approval in AGM. The amount of recommended dividend is Tk. 1,757,141,880.
Annexure-A
246
Schedule of Fixed Assets

Figures in Taka
Cost Accumulated Depreciation & Amortization Net book
Adjustment Additions Disposals Balance at 31 On disposals Balance at 31 value at 31
Particulars Balance on 1 Balance on 1 Charge for
of revaluation during the during the December during the December December
Annual Report 2016
January 2016 January 2016 the year 2016

reserve year year 2016 year 2016
Tangible assets:
Land 4,044,759,466 - - - 4,044,759,466 - - - - 4,044,759,466
Building 730,856,590 - - - 730,856,590 68,963,151 18,271,417 - 87,234,568 643,622,022
Building under construction 572,749,420 - 58,771,091 - 631,520,511 - - - - 631,520,511
Eastern Bank Ltd.
Machinery and equipment 722,753,229 - 52,606,650 (13,732,771) 761,627,108 577,977,525 66,293,898 (13,732,308) 630,539,115 131,087,993
Computer and network equipment 485,274,103 - 35,795,631 - 521,069,734 355,876,417 67,934,602 - 423,811,019 97,258,714
Vehicles 131,612,854 - 7,177,970 (3,100,000) 135,690,824 88,385,356 16,169,028 (3,099,999) 101,454,385 34,236,439
Furniture and fixtures & leased
460,748,842 - 10,569,721 (1,797,302) 469,521,261 311,149,141 33,735,089 (1,631,853) 343,252,377 126,268,883
assets under finance lease
Intangible assets:
Software 334,132,732 - 95,117,221 - 429,249,953 137,830,592 60,079,443 - 197,910,035 231,339,918
At 31 December 2016 7,482,887,235 - 260,038,284 (18,630,073) 7,724,295,446 1,540,182,182 262,483,477 (18,464,160) 1,784,201,499 5,940,093,948
as at 31 December 2015 Figures in Taka

Cost Accumulated Depreciation & Amortization Net book
Adjustment Additions Disposals Balance at 31 Balance at 31 value at 31
Particulars Balance on 1 Balance on 1 Charge for On disposals
of revaluation during the during the December during the December December
January 2015 January 2015 the year year 2015
reserve year year 2015 2015
Tangible assets:
Land 5,178,917,918 (1,154,620,812) 20,462,360 - 4,044,759,466 - - - - 4,044,759,466
Building 730,841,590 - 15,000 - 730,856,590 50,692,014 18,271,137 - 68,963,151 661,893,439
Building under construction 497,621,423 - 75,127,997 - 572,749,420 - - - - 572,749,420
Machinery and equipment 646,001,743 - 76,751,486 - 722,753,229 478,671,610 99,305,915 - 577,977,525 144,775,704
Computer and network equipment 434,842,123 - 50,431,980 - 485,274,103 304,395,727 51,480,690 - 355,876,417 129,397,685
Vehicles 112,407,421 - 26,624,933 (7,419,500) 131,612,854 81,362,059 14,442,791 (7,419,494) 88,385,356 43,227,498
Furniture and fixtures & leased assets
442,896,022 - 17,852,820 - 460,748,842 276,722,826 34,426,315 - 311,149,141 149,599,700
under finance lease
Intangible assets:
Software 323,707,619 - 10,425,113 - 334,132,732 88,515,886 49,314,706 - 137,830,592 196,302,140
At 31 December 2015 8,367,235,859 (1,154,620,812) 277,691,689 (7,419,500) 7,482,887,235 1,280,360,122 267,241,554 (7,419,494) 1,540,182,182 5,942,705,054
Eastern Bank Limited Annexure-A1
Schedule of Fixed Assets Disposals

Figures in Taka
Accumulated Net book Mode of Buyer/ Highest
Date Particulars Cost Sales Value Tax & VAT Gain/(Loss)
depreciation value Disposal bidder
Hyundai Santa Fe Jeep Open Mr. Rezaul
21 Apr 2016 3,100,000 3,099,999 1 804,419 66,420 737,998
DM (GHA-11-9441) Tender Karim
Open
27 Jun 2016 Furniture & fixtures 1,797,302 1,631,853 165,449 349,890 28,890 155,551 M/S Chadni Traders
Tender
Open
27 Jun 2016 Machinery & equipment 5,150,075 5,150,001 74 548,270 45,270 502,926 The Exchangers
Tender
Open M/S A.R.
30 Jun 2016 Machinery & equipment 8,582,696 8,582,307 389 521,500 43,059 478,052
Tender Enterprise
Total 18,630,073 18,464,160 165,913 2,224,079 183,639 1,874,527
Eastern Bank Limited and its subsidiaries Annexure-B
Balance with other Banks and Financial Institutions (Consolidated)

Outside Bangladesh (note 4.2)

2016 2015
Name of banks and financial institutions Currency Amount in Foreign Amount in Foreign Conversion
Conversion rate Amount in BDT Amount in BDT
Currency Currency rate
In demand deposit account (non interest bearing) with :
AB Bank Limited, India USD 228,295 78.70 17,967,351 26,717 78.50 2,097,304
Al-Rajhi Bank, KSA SAR 15,000 20.98 314,750 15,000 20.92 313,817
Bank of Bhutan, Bhutan USD 5,219 78.70 410,752 14,716 78.50 1,155,215
Bank of Nova Scotia, Canada CAD 19,793 58.05 1,148,953 10,803 56.53 610,697
Bank of Tokyo-Mitshubishi UFJ, Ltd.,India USD 6,737 78.70 530,217 6,737 78.50 528,857
Bank of Tokyo-Mitshubishi UFJ, Ltd., UK GBP - - - 46,769 116.31 5,439,534
Bank of Tokyo-Mitshubishi UFJ, Ltd., Japan JPY 1,807,437 0.67 1,213,332 1,773,314 0.65 1,155,491
Citibank NA, USA USD 2,384,640 78.70 187,676,384 3,627,212 78.50 284,737,232
Commerz Bank AG, Germany EUR 95,157 81.98 7,800,616 152,591 85.83 13,097,220
Deutsche Bank AG, Germany (OBU) EUR - - - 35,996 85.83 3,089,616
Habib American Bank, USA USD - - - 19,219 78.50 1,508,687
HSBC, Hong Kong-HKD (EBL Finance HK Limited) HKD - - - 2,343,149 10.17 23,837,089
HSBC, Hong Kong-USD (EBL Finance HK Limited) USD - - - 12,616 78.50 990,347
ICICI Bank Limited, Hong Kong HKD 2,279,752 10.15 23,136,291 - - -
ICICI Bank Limited, India USD 273,534 78.70 21,527,756 457,151 78.50 35,886,495
JP Morgan Chase Bank NA, Germany EUR 68,598 81.98 5,623,409 36,024 85.83 3,091,979
JP Morgan Chase Bank NA, UK GBP 197,664 96.24 19,022,618 124,592 116.31 14,490,769
JP Morgan Chase Bank NA, USA USD 1,040,185 78.70 81,864,884 - - -
JP Morgan Chase Bank NA, Australia AUD 44,541 56.49 2,516,210 52,583 57.23 3,009,541
Mashreqbank, USA USD 101,753 78.70 8,008,157 305,150 78.50 23,954,373
National Commercial Bank, KSA SAR 65,942 20.98 1,383,689 70,391 20.92 1,472,662
Nepal Bangladesh Bank Ltd., Nepal USD 112,744 78.70 8,873,179 47,191 78.50 3,704,502
NIB Bank Limited, Pakistan USD 507,058 78.70 39,906,619 208,212 78.50 16,344,690
Nordea Bank, Norway NOK 187,464 9.03 1,692,458 36,521 8.93 326,248
Standard Chartered Bank, USA (OBU) USD - - - 315,631 78.50 24,777,160
Standard Chartered Bank, Sri Lanka USD 92,878 78.70 7,309,676 - - -
Standard Chartered Bank, Germany EUR 122,563 81.98 10,047,209 2,827 85.83 242,669
Standard Chartered Bank, India USD 1,727,120 78.70 135,928,146 569,227 78.50 44,684,503
Standard Chartered Bank, USA USD 1,689,715 78.70 132,984,327 194,785 78.50 15,290,656
Standard Chartered Bank, Singapore SGD 3,912 54.28 212,326 9,850 55.50 546,738
Wells Fargo, USA USD 1,381,567 78.70 108,732,335 - - -
Zurcher Kantonal Bank, Switzerland CHF 4,849 76.54 371,145 22,673 79.56 1,803,830
Total 826,202,789 528,187,921
Eastern Bank Limited and its subsidiaries Annexure-B1
Borrowing from Banks and Financial Institutions (Consolidated)

Outside Bangladesh - (note-11.2)

2016 2015
Name of banks and financial institutions Currency Amount Amount
Conversion Amount in Conversion Amount in
in Foreign in Foreign
rate BDT rate BDT
Currency Currency
Asian Development Bank, Philippines USD - - - 4,996,698 78.50 392,242,308
Banca Ubae Spa, Spain USD - - - 5,000,000 78.50 392,501,500
Deutsche Investitions-und Entwicklungsgesellschaft MBH (DEG) USD 36,000,000 78.70 2,833,279,200 48,000,000 78.50 3,768,014,400
Deutsche Trust Company Americas, USA USD - - - 560,632 78.50 44,009,757
FMO, Netherland USD 8,000,000 78.70 629,617,600 12,000,000 78.50 942,003,600
HSBC, USA USD 200 78.70 15,740 370,241 78.50 29,063,995
Habib American Bank, USA USD 128,405 78.70 10,105,727 - - -
ICICI Bank Limited, UAE USD 26,247,198 78.70 2,065,712,208 - - -
ICICI Bank Limited, Hong Kong USD 6,000,000 78.70 472,213,200 17,886,596 78.50 1,404,103,182
JP Morgan Chase Bank, USA USD - - - 437,034 78.50 34,307,335
International Finance Corporation (IFC), USA USD 40,000,000 78.70 3,148,088,000 30,000,000 78.50 2,355,009,000
Mashreq Bank, USA USD 6,371,917 78.70 501,483,859 - - -
National Bank of Ras Al-Khaimah, KSA USD 5,915,730 78.70 465,580,971 - - -
PROPARCO, France USD 16,000,000 78.70 1,259,235,200 16,000,000 78.50 1,256,004,800
Standard Chartered Bank, Sri Lanka USD - - - 7,945 78.50 623,646
Standard Chartered Bank, Hong Kong USD 3,923,949 78.70 308,823,399 - - -
Standard Chartered Bank, Singapore USD 35,837,533 78.70 2,820,492,687 42,785,256 78.50 3,358,655,437
United Bank Limited, UAE USD 16,548,177 78.70 1,302,377,953 2,173,699 78.50 170,636,051
Wells Fargo, USA USD 5,279,683 78.70 415,522,646 422,722 78.50 33,183,788
Total 16,232,548,390 14,180,358,799
Annexure-C
Related party disclosures
Two parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise
significant influence over the other party in making financial and operating decisions. Parties are also considered to be related if they
are subject to common control or common significant influence. Related party informations are given below.
I) Directors’ interest in different entities
Name of the firms/companies in which Percentage
Status with directors of the bank are interested as of holding/
Name of Directors Status
the Bank proprietor, partner, director, managing interest in the
agent, guarantor, employee etc. concern
M. Ghaziul Haque Chairman Portlink Logistics Ltd. Chairman 0.02%
Andes Ltd. Chairman 14.03%
Anglo MGH Energy (BD) Ltd. Chairman 5.00%
MGH Global Airlines Ltd.(BD. Port Chairman 1.02%
management Ser. Ltd.)
Galileo Bangladesh Ltd. Chairman 20.00%
MGH Logistics Pvt. Ltd. Chairman 5.00%
Mir Nasir Hossain Director Mir Akther Hossain Ltd. MD 18.00%
(Representing Mir Holdings Ltd.) Mir Ceramic Ltd. MD 88.00%
Mir Telecom Ltd. MD 20.00%
Mir Holdings Ltd. MD 50.00%
Mir Pharmaceuticals Ltd. MD 50.00%
Bangla Telecom Ltd. MD 40.00%
Coloasia Ltd. MD 40.00%
BTS Communications (BD) Ltd. MD 40.00%
MIR LPG Ltd. MD 40.00%
Mir Communications Ltd. Chairman 40.00%
Mir Energy Ltd. Chairman 40.00%
Global Fair Communications Ltd. Chairman 40.00%
Agrani Insurance Co. Ltd. Shareholder 3.72%
Jupiter Technology Proprietorship 100.00%
A. M. Shaukat Ali Director Engineering Consultants & Associates Ltd. Chairman 20.00%
Samorita Hospital Ltd. Director 3.10%
Md. Showkat Ali Chowdhury Director Need Fashion Wear & Textile Ltd. Chairman 35.00%
(Representing Namreen Chittagong Oxygen (Pvt.) Ltd. Chairman 20.00%
Enterprise Ltd.) Finlay (International) Ltd. Chairman 81.00%
KAPS Bangladesh Ltd. Chairman 12.50%
JF (Bangladesh) Ltd. Chairman 81.00%
Port Link Housing Ltd. Chairman 50.00%
Finlay Properties Ltd. Chairman 55.00%
Legend Property Development Ltd. MD 50.00%
Z.N. Enterprise Ltd. MD 50.00%
Namreen Enterprise Ltd MD 50.00%
ABC Steel Enterprise Ltd. MD 80.00%
S.L. Steels Ltd. MD 50.00%
Unique Refineries Ltd. MD 55.00%
Port Link Logistics Centre Ltd. Director 25.00%
South Asia Securities Ltd. Director 7.10%
Peninsula Housing & Development Ltd Director 36.00%
Consolidated Tea & Plantation Ltd. Director 6.25%
Consolidated Tea & Lands Co. (BD) Ltd. Director 6.25%
Baraoora (Sylhet) Tea Co. (BD) Ltd. Director 6.25%
Eastern Industries Ltd. Director 25.00%
Bay Hill Hotel and Ressorts Ltd. Director 40.00%
M/S. Chittagong Properties Managing Partner 50.00%
S.N. Corporation Partner 50.00%

Ms. Salina Ali Director Unique Group of Companies Ltd. Chairperson 10.00%
(Representing Borak Real Estate Unique Hotel & Resorts Ltd. Chairperson 5.45%
(Pvt.) Ltd.) Borak Real Estate (Pvt.) Ltd. Chairperson 12.00%
Unique Ceramic Ind. Pvt. Ltd. Chairperson 12.25%
Borak Travels Ltd. Chairperson 50.00%
Unique Eastern Pvt. Ltd. Chairperson 10.42%
Unique Vocational Training Center Ltd. Chairperson 12.00%
Borak Shipping Ltd. Chairperson 7.50%
Unique Property Development Ltd. Chairperson 12.00%
Unique Share Management Ltd. MD 12.00%
Unique Shakti Ltd. MD 20.00%
Crescent Commercial Center Ltd. MD 20.00%
Anis Ahmed Director MGH Logistics Pvt. Ltd. MD 90.00%
(Representing Aquamarine MGH Holdings Ltd. MD 98.00%
Distributions Ltd.) MGH Global Airlines Ltd.(BD. Port MD 21.00%
management Ser. Ltd.)
Peninsular Shipping Services Ltd. MD 80.00%
MGH Restaurants (Pvt.) Ltd. MD 95.00%
Aquamarine Distributions Ltd. MD 99.00%
Galileo Bangladesh Ltd. MD 80.00%
Renaissance Aviation Services Ltd. MD 60.00%
One World Aviation Ltd. MD 67.00%
RAS Holidays Ltd. MD 95.00%
ITSA-Total Logistics Ltd. MD 97.00%
Transmarine Logistics Ltd. MD 75.00%
Total Transportation Ltd. MD 99.00%
Tricon Global Logistics Ltd. MD 80.00%
Global Freight Ltd. MD 98.00%
International Brands Ltd. MD 99.00%
Integrated Transportation Services Ltd. MD 99.00%
Emirates Shipping Lines Bangladesh Ltd. MD 78.00%
Radio Foorti Ltd. MD 95.00%
Portlink Housing Ltd. MD 50.00%
Portlink Logistics Centre Ltd. MD 50.00%
Anglo MGH Energy (BD) Ltd. MD 95.00%
DC Bypass Ltd. MD 90.00%
Hytrans Bangladesh Ltd. MD 90.00%
Meah Mohammed Abdur Rahim Director Ancient Steamship Company Ltd. MD 44.36%
(Independent Director) Hudig Meah (BD) Ltd. MD 51.00%
Mufakkharul Islam Khasru
(Representing Namreen Director Finlay Properties Ltd. MD 15.00%
Enterprise Ltd.)
Ormaan Rafay Nizam
Director National Brokers Ltd. Shareholder 15.40%
(Independent Director)
Gazi Md. Shakhawat Hossain Director M/s Purnima Construction Pvt. Ltd. MD 0.099%
(Representing M/s Purnima Bay Hill Hotel & Resorts Ltd. Representative Director 40.00%
Construction Pvt. Ltd.) Unique Hotel and Resorts Ltd Representative Director 7.46%
General Electric company (BD) Ltd. Director 0.000% (1share)
Ali Reza Iftekhar MD & CEO EBL Investments Ltd. Director 0.000033%
EBL Securities Ltd. Director 0.000111%
EBL Finance (HK) Ltd. Director -
ii) Significant contracts where the Bank is a party & wherein directors have interest: Nil
iii) Shares issued to directors and executives without consideration or exercisable at discount : Nil
iv) Related party transactions : Please see Annexure - C1
v) Lending Policies to related parties : Related parties are allowed loans and advances as per Credit Policy of the Bank.
vi) Business other than Banking business with any related concern of the Directors as per Section-18(2) of the Bank Company Act 1991: Nil
vii) Investments in the securities of directors and their related concern : Nil.
Annexure-C1
Related Party Transactions

Related party transaction is a transfer of resources, services, or obligations between related parties, regardless of whether a price is
charged as per BAS 24 ‘Related Party Disclosures’. The Bank in normal course of business had transactions with other entities that
fall within the definition of ‘Related Party’ as contained in BAS 24 and as defined in the BRPD circular no. 14 dated 25 June 2003.
1 The significant related party transactions during the year were as follows:
1.a Non-funded facilities:
Figures in Taka
Nature of Interest Transactions
Outstanding Outstanding
Name of the Representing of the Directors Nature of Sanctioned Amount
as at 01-01- as at 31-12-
organisation Directors with the borrowing Facilities Amount Debit Credit Overdue
2016 2016
firm / individual
Z. N. Enterprise Md. Showkat Ali
Ltd. Chowdhury LG-
MD Performance 193,100 192,900 - - 192,900 -
Customer ID- Representing Bond-SME
100397 Director
Unique Enterprise LG-
Mohd. Noor Ali
Customer ID- Performance 787,360 787,360 - - 787,360 -
Spouse of Director Bond-SME
100711
1.b Credit card facilities: Figures in Taka
Outstanding as at 1 Outstanding as at
Representing Directors Nature of interest with EBL Approved limit
Jan 2016 31 Dec 2016
A.M. Shaukat Ali Director 500,000 - -
Mir Nasir Hossain Representing Director 500,000 - (121)
Md. Showkat Ali Chowdhury Representing Director 250,000 - -
Mohd. Noor Ali Spouse of Director 500,000 279,479 22,717
2) Transactions relating to procurement, service & rent: Figures in Taka

Name of the Company/ Related Directors Amount of transaction Outstanding as
Nature of transactions
Person of EBL made in 2016 at 31 Dec 2016
Monthly recurring charge for EBL Data
Coloasia Limited Mir Nasir Hossain 2,401,200 -
Center at Jessore.
BTS Communications (BD)
Mir Nasir Hossain Monthly internet connectivity bills. 4,742,485 -
Limited
BTS Communications (BD) Licensing cost for customer relationship
Mir Nasir Hossain 11,538,517 -
Limited management solution (CRM Next).
Purchase of stair tiles for EBL Corporate
Mir Ceramic Limited Mir Nasir Hossain 786,791
Head Office at 100 Gulshan, Dhaka.
Name of the Company/ Related Directors Amount of transaction Outstanding as

Nature of transactions
Person of EBL made in 2016 at 31 Dec 2016
Security Deposit against lease rental agreement
Unique Hotel & Resorts Limited Salina Ali - 438,900
for ATM booth at The Westin, Gulshan, Dhaka.
Rental payment for ATM booth at The
Unique Hotel & Resorts Limited Salina Ali 240,000 -
Westin, Gulshan, Dhaka.
Md. Showkat Ali Md. Showkat Ali Advance rent for EBL DST Sales office at
- 180,000
Chowdhury Chowdhury Dhanmondi, Dhaka.
Md. Showkat Ali Md. Showkat Ali Rental payment for EBL DST Sales office at
2,640,000 -
Chowdhury Chowdhury Dhanmondi, Dhaka.
Md. Showkat Ali Advance rent for EBL New Market
Tashmia Ambarin - 2,494,800
Chowdhury Branch, Chittagong.
Md. Showkat Ali Rental payment for EBL New Market
Tashmia Ambarin 4,573,800 -
Chowdhury Branch, Chittagong.
Md. Showkat Ali Rental payment for EBL Godown at New
Tashmia Ambarin 609,840 -
Chowdhury Market, Chittagong.
Namreen Enterprise Md. Showkat Ali Rental payment for EBL office premises at
17,612,000 -
Limited Chowdhury ZN Tower, Gulshan, Dhaka.
Namreen Enterprise Md. Showkat Ali Advance rent for EBL office premises at
- 70,800,240
Limited Chowdhury ZN Tower, Gulshan, Dhaka.
3 Inter-company balances between EBL and its subsidiaries: Figures in Taka
Name of Subsidiaries Nature of Account Balance as at 31 Dec 2016

In Special Notice Deposit (SND) Account 2,712,807
Dividend receivable 90,000,000
In Current Deposit (CD) Account 345
EBL Investments Limited In Special Notice Deposit (SND) Account 14,991,664
Dividend receivable 20,000,000
In Nostro Account 8,424,913
EBL Finance (HK) Limited Dividend receivable 30,917,927
Short Term Finance 3,777,142,647
In Special Notice Deposit (SND) Account 52,911,590
Receivable against expense -
4 Compensation of key management personnel: Refer to note 35
a. Disclosure regarding outstanding REPO as on 31 December 2016 Annexure-D
Amount (1st Leg cash

Sl Counterparty name Agreement date Reversal Date
consideration)
There is no outstanding REPO as on 31 December 2016
Disclosure regarding outstanding Reverse REPO as on 31 December 2016

Amount (1st Leg cash
Sl Counterparty name Agreement date Reversal Date
consideration)
There is no outstanding Reverse REPO as on 31 December 2016

b. Disclosure regarding overall transaction of REPO and reverse REPO
Minimum outstanding Maximum outstanding Daily average outstanding
Particulars
during the year during the year during the year
Securities sold under REPO
With Bangladesh Bank - - -
With other banks & financial institutions 107,492,093 15,047,988,324 1,336,952,669
Securities purchased under Raeverse REPO
With Bangladesh Bank - - -
With other banks & financial institutions 103,065,332 1,732,841,152 18,592,025
Annexure-E
Business Segment Profit and Loss Account
Figures in million Taka

Bank Subsidiaries
Particulars Main Consolidated
OBU Solo EBLSL EBLIL EBLFHKL EBLAML
Operation
Interest income 12,443 1,333 13,546 145 27 119 1 13,663
Interest expense 7,294 953 8,016 139 - 75 - 8,055
Net Interest Income 5,149 381 5,529 6 27 43 1 5,607
Investment income 3,315 - 3,315 62 26 - 3,262
Fees, commission and brokerage 1,713 64 1,776 121 8 60 1,965
FX Income 671 2 673 - - - - 673
Other operating income 154 11 165 3 - 14 - 182
Total operating income 11,002 457 11,459 191 61 117 1 11,688
Salary and allowances 2,801 - 2,801 47 11 25 - 2,883
Rent, taxes, insurance, utilities etc. 636 - 636 10 4 5 - 655
Legal expenses 110 - 110 1 - - - 111
Postage, stamp, telecommunication etc. 139 - 139 2 - 4 - 144
Stationery, printing, advertisement, etc. 299 - 299 2 - 1 - 302
Managing Director's salary and allowances 20 - 20 - - - - 20
Directors' fees and expenses 4 - 4 - - - - 4
Audit fees 1 - 1 - - 1 - 2
Repairs, maintenance and depreciation 497 - 497 5 1 1 - 503
Other operating expenses 481 54 535 8 2 2 - 547
Total operating expense 4,987 54 5,041 74 18 39 - 5,172
Profit before provisions 6,015 403 6,418 117 42 79 1 6,516
Provisions:
Provision for loans, advances & OBS exposures 2,247 40 2,288 4 - - - 2,292
Other provisions (269) - (269) (20) (4) - - (293)
Total provisions 1,978 40 2,019 (16) (4) - - 1,999
Profit before tax 4,037 363 4,400 132 46 79 1 4,517
Annual Report 2016
Tax provision 1,743 - 1,743 35 9 13 - 1,801

Profit after tax 2,294 363 2,656 98 37 65 1 2,716
Eastern Bank Ltd.
253
Annexure-E1
254
Business Segment Balance Sheet

Figures in million Taka

Bank Subsidiaries
Annual Report 2016
Particulars Main Consolidated

OBU Solo EBLSL EBLIL EBLFHKL EBLAML
Operation
Assets
Cash in hand (including balance with Bangladesh Bank and its agent
12,199 - 12,199 - - - - 12,199
bank)
Eastern Bank Ltd.
Balances with other banks and financial institutions 13,759 7,855 13,572 781 15.0 30 53 10,626
Money at call and short notice 100 - 100 - - - - 100
Investments 21,449 - 21,449 1,349 142.6 - - 22,940
Loans and advances 129,520 22,564 152,084 1,295 182.9 3,865 - 156,371
Fixed assets including land, building, furniture and fixtures 5,940 - 5,940 12 1 1 - 5,954
Other assets 5,602 97 5,688 460 40.2 2 - 4,033
Non-banking assets 154 - 154 - - - - 154
Total assets 188,723 30,516 211,186 3,897 382 3,898 53 212,377
Liabilities
Borrowing from other banks, financial institutions and agents 17,685 29,418 39,061 1,364 - 3,746 - 39,370
Deposits and other accounts 139,964 320 140,284 - - - - 140,205
Provisions and other liabilities 10,866 414 11,269 958 51 72 0.41 11,971
Total liabilities 168,515 30,152 190,614 2,322 51 3,818 0 191,545
Total shareholders' equity 20,208 364 20,572 1,575 331 80 52 20,832
Total liabilities & shareholders' equity 188,723 30,516 211,186 3,897 382 3,898 53 212,377
Eastern Bank Limited Annexure - F
Highlights on the Overall Activities /Performance

Sl
No
1 Paid up capital Taka 7,028,567,520 6,111,797,850
2 Total capital (Tier-I & Tier-II) Taka 22,472,074,264 20,463,336,507
3 Surplus/(shortage) capital Taka 7,590,928,970 6,092,646,160
4 Total assets Taka 211,185,458,156 189,563,399,618
5 Total deposits Taka 140,284,158,650 127,990,033,575
6 Total loans and advances Taka 152,083,687,536 130,226,324,465
7 Total contingent liabilities Taka 75,576,306,844 65,472,047,222
8 Loans to deposits ratio (total loans/total deposits) % 108.41 101.75
9 % of classified loans against total loans and advances % 2.69 3.27
10 Profit after tax and provisions Taka 2,656,486,826 2,220,916,202
11 Loans classified during the year (gross) Taka 3,022,330,872 2,380,275,747
12 Provision held against classified loans Taka 3,474,760,744 2,820,642,668
13 Surplus of provision Taka - -
14 Cost of fund (interest expense/average borrowing and deposits) % 4.75 6.50
15 Interest bearing assets Taka 183,760,577,206 163,992,828,815
16 Non-interest bearing assets Taka 27,424,880,946 25,570,570,806
17 Return on assets (ROA) (PAT/average assets) % 1.33 1.23
18 Income from investments Taka 3,315,432,277 3,576,370,328
19 Return on investment or ROI (PAT/average equity, long term borrowings and deposits) % 2.26 2.25
20 Earnings per share (PAT/weighted average number of shares) (restated) Taka 3.78 3.16
21 Operating profit per share (Net operating profit/ weighted average number of
shares) (restated) Taka 9.13 7.40
22 Price earning ratio Times 7.67 9.05

Eastern Bank Limited Annexure - G
Offshore Banking Unit, Bangladesh

Balance Sheet
2016 2015
Note
USD Taka USD Taka
PROPERTY AND ASSETS
Cash
In hand (including foreign currencies) - - - -
With Bangladesh Bank (including foreign currencies) - - - -
- - - -
Balance with other banks and FIs 3
In Bangladesh 52,046,711 4,096,190,636 55,515,732 4,358,001,617
Outside Bangladesh 47,758,989 3,758,737,512 32,404,989 2,543,801,391
99,805,700 7,854,928,148 87,920,721 6,901,803,008
Money at call and short notice - - - -
Investment - - - -
Loans and Advances: 4
Loans, cash credits, overdrafts etc. 4.1 120,261,482 9,464,843,231 97,333,759 7,640,729,269
Bills purchased and discounted 4.2 166,434,572 13,098,766,954 128,848,787 10,114,668,455
286,696,054 22,563,610,185 226,182,546 17,755,397,724
Fixed assets including land, building, furniture and fixtures - - - -
Other assets 5 1,235,883 97,266,696 1,275,887 100,157,513
Non banking assets - - - -
Total assets 387,737,637 30,515,805,029 315,379,155 24,757,358,245
LIABILITIES AND CAPITAL

Liabilities
Borrowing from other banks, financial institutions and agents 6
Demand borrowing 6.1 84,568,473 6,655,724,888 71,300,526 5,597,120,183
Term borrowing 6.2 289,221,676 22,762,382,199 235,082,295 18,454,030,682
373,790,149 29,418,107,087 306,382,821 24,051,150,865
373,790,149 29,418,107,087 306,382,821 24,051,150,865
Current accounts and other accounts 7.1 4,064,677 319,899,058 2,074,160 162,822,173
Term deposits 7.2 - - - -
4,064,677 319,899,058 2,074,160 162,822,173
Other liabilities 8 5,260,311 413,997,658 3,802,097 298,465,743
Total liabilities 383,115,138 30,152,003,803 312,259,077 24,512,438,780
Capital/shareholders' equity
Paid-up capital - - - -
Foreign currency translation difference 9 - 1,125,580 - 1,720,332
Surplus in profit and loss account 16 4,622,498 362,675,646 3,120,078 243,199,133
Total shareholders' equity 4,622,498 363,801,225 3,120,078 244,919,465
Total liabilities and shareholders' equity 387,737,637 30,515,805,029 315,379,155 24,757,358,245
OFF-BALANCE SHEET ITEMS

Contingent liabilities
Acceptances and endorsements 9,000,567 708,346,418 9,013,009 707,523,886
Letter of guarantees - - 509,500 39,995,903
Bills for collection 8,501,676 669,083,629 12,170,147 955,360,176
Irrevocable letters of credit 3,876,761 305,101,883 8,602,199 675,275,193
Other commitments - - - -
Total off-balance sheet items including contingent liabilities 21,379,005 1,682,531,930 30,294,854 2,378,155,158
Eastern Bank Limited Annexure - G1

Profit and Loss Account
2016 2015
Note
USD Taka USD Taka
Interest income 10 16,995,408 1,333,437,611 12,986,913 1,012,284,413

Interest paid on deposits and borrowings 11 (12,143,652) (952,775,126) (8,730,251) (680,492,517)
Net interest income 4,851,756 380,662,485 4,256,662 331,791,896
Commission, exchange and brokerage 12 832,757 65,337,000 325,825 25,396,949

Other operating Income 13 138,266 10,848,595 103,502 8,067,588
971,023 76,185,595 429,327 33,464,536
Total operating income 5,822,779 456,848,080 4,685,989 365,256,433
Operating expenses 14 684,304 53,689,583 595,021 46,379,778

Profit before provision 5,138,475 403,158,497 4,090,969 318,876,655
Less: Provision for unclassified loans and advances 15 515,977 40,482,852 970,893 75,677,718
(including provision for off balance sheet items)
Total profit before income tax 4,622,498 362,675,645 3,120,076 243,198,937
Less: Provision for income tax - - - -
Net profit/(loss) after tax 4,622,498 362,675,645 3,120,076 243,198,937
Balance of profit brought forward from previous year - - - -
Surplus in profit and loss account carried forward 16 4,622,498 362,675,645 3,120,076 243,198,937
Eastern Bank Limited Annexure - G2

2016 2015
Note
USD Taka USD Taka

Interest received 16,235,600 1,273,104,785 11,892,979 925,886,688
Interest paid (11,208,626) (878,940,670) (8,092,595) (630,116,611)
Commission, exchange and brokerage 17 832,757 65,337,000 325,825 25,396,949
Received from other operating activities 18 138,266 10,848,169 103,502 8,067,588
Paid for operating expenses 19 (684,304) (53,689,583) (595,021) (46,379,778)
Operating profit before changes in operating 5,313,693 416,659,701 3,634,690 282,854,836
assets and liabilities
(Increase)/decrease in operating assets:
Loan and advances to customers (59,649,376) (4,739,790,651) (77,271,929) (6,146,778,226)
Other assets (64,319) (5,198,167) (991,700) (78,005,288)
Increase/(decrease) in operating liabilities: - -
Foreign currency translation difference - - - -
Deposits from banks - - - -
Customers' deposits and other accounts 1,055,492 83,242,430 485,280 38,298,991
Other liabilities 942,238 75,049,491 655,296 53,177,302
(57,715,965) (4,586,696,897) (77,123,053) (6,133,307,221)
Net cash flows from operating activities (52,402,273) (4,170,037,196) (73,488,363) (5,850,452,385)
B) Cash flows from investing activities - - - -
Borrowing from other banks, financial institutions and
agents 67,407,330 5,366,956,220 139,917,487 11,075,278,085
Net profit transferred to main operations 16 (3,120,078) (243,199,132) (3,149,655) (244,451,024)
Net cash from financing activities 64,287,252 5,123,757,088 136,767,833 10,830,827,061
D) Net (decrease)/increase in cash (A+B+C) 11,884,979 953,719,892 63,279,469 4,980,374,676
E) Effects of exchange rate changes on cash and cash
equivalents - (594,752) - 657,626
F) Opening cash and cash equivalents 87,920,721 6,901,803,008 24,641,251 1,920,770,706
G) Closing cash and cash equivalent (D+E+F) 99,805,700 7,854,928,148 87,920,721 6,901,803,008
Closing cash and cash equivalents
Cash in hand (including foreign currencies) - - - -
Balances with Bangladesh Bank and its agent banks - - - -
Balances with other banks and financial institutions (Annexure A) 99,805,700 7,854,928,148 87,920,721 6,901,803,008
Money at call and short notice - - - -
Prize bonds - - - -
99,805,700 7,854,928,148 87,920,721 6,901,803,008

Offshore Banking Unit
1 Nature of business
Offshore banking Unit (“the Unit”) is a separate business unit of Eastern Bank Limited (“the Bank”), governed under the rules and
guidelines of Bangladesh Bank (BB). The Bank obtained the Offshore Banking Unit (OBU) permission vide letter no. BRPD(p)744/
(89)/2004-303 dated 25 January 2004. The Bank commenced the operation of its Offshore Banking Unit (OBU) from 19 May 2004 and
its office is located at 10, Dilkusha C/A (2nd floor) Dhaka-1000.
It gives loans (on and off-balance sheet exposures) and takes deposits in freely convertible foreign currencies to and from person/
institutions not resident in Bangladesh and Type-A (wholly foreign owned) units in EPZs in Bangladesh. It also gives long term loans
to industrial units outside EPZs and Type-B & C industrial units within the EPZs subject to compliance by the industrial units with the
guidelines of BIDA / Bangladesh Bank. Besides, this unit provides bill discounting / financing facilities accepted by Authorized Dealer
(AD) in Bangladesh against usance L/Cs in accordance with BB guidelines.
2 Basis of preparation and significant accounting policies

Basis of preparation

The financial statements of the Unit as at and for the year ended 31 December 2016 have been prepared in accordance with Bangladesh
Financial Reporting Standards (BFRSs), the “First Schedule” (section 38) of the Bank Company Act 1991. The accounting policies set
out in the financial statements of main operation of the Bank have been applied consistently in these financial statements of OBU except
otherwise instructed by Bangladesh Bank as prime regulator.
2.2 Loans and advances

a) These are stated gross, with accumulated specific and general provisions for bad and doubtful debts being shown under other liabilities.
b) Provision for Loans and Advances is made on the basis of period end review by the management and of instructions contained in
BRPD circular no. 14 dated 23 September 2012 and BRPD circular no. 19 dated 27 December 2012 and BRPD Circular no. 16 dated 18
November 2014.
2.3 General
Allocation of common expenses
Operaing expenses in the nature of rent, rates and taxes, salaries, management expenses, printing and stationery, electricity, postages,
stamps, telecommunication and audit fees are accounted for in Account of the Main Operation of the Bank.
Fixed Assets and depreciation

Fixed assets of this unit are appearing in the books of the main operation of the bank and depreciation is also charged to profit and loss
account of the main operation of the Bank.
Certain corresponding figures in the financial statements have been reclassified and rearranged to conform to the current year’s
presentation.
These financial statements of the unit cover one calender year from 1 January 2016 to 31 December 2016.
2016 2015
Note
USD BDT USD BDT
3 Balance with other Banks and Financial Institutions
Inside Bangladesh
In interest bearing account
Eastern Bank Limited 17,614,711 1,386,316,485 15,515,732 1,217,989,617
Islami Bank Bangladesh Limited 10,000,000 787,022,000 40,000,000 3,140,012,000
Modhumoti Bank Limited 2,432,000 191,403,750 - -
Commercial Bank of Ceylon plc 17,000,000 1,337,937,400 - -
Premier Bank Limited 5,000,000 393,511,000 - -
52,046,711 4,096,190,636 55,515,732 4,358,001,617
Outside Bangladesh
In interest bearing account
EBL Finance (HK) Limited 47,600,000 3,746,224,720 32,050,000 2,515,934,615
47,600,000 3,746,224,720 32,050,000 2,515,934,615
2016 2015
Note
USD BDT USD BDT
In-non interest bearing account
Standard Chartered Bank, Newyork 31,328 2,465,583 315,631 24,777,160
Deutsche Bank AG, Frankfurt, Germany - - 39,358 3,089,616
Standard Chartered Bank, Germany 127,661 10,047,209 - -
158,989 12,512,792 354,989 27,866,776
47,758,989 3,758,737,512 32,404,989 2,543,801,391
Total 99,805,700 7,854,928,148 87,920,721 6,901,803,008
4 Loans and advances

i) Loans, cash credits, overdrafts, etc. 4.1 120,261,482 9,464,843,231 97,333,759 7,640,729,269
ii) Bills discounted and purchased 4.2 166,434,572 13,098,766,954 128,848,787 10,114,668,455
286,696,054 22,563,610,186 226,182,546 17,755,397,724
4.1 Loans, Cash Credit, Overdraft etc.
Inside Bangladesh :
Loans 115,518,908 9,091,592,205 91,202,699 7,159,439,243
Cash Credit - - - -
Overdraft 4,742,574 373,251,026 6,131,060 481,290,027
120,261,482 9,464,843,231 97,333,759 7,640,729,269
4.2 Bills Purchased and Discounted

Inside Bangladesh :
Bills discounted/financed 4,356,691 342,881,173 128,848,787 10,114,668,455
LDBP/FDBP 162,077,881 12,755,885,782 - -
166,434,572 13,098,766,954 128,848,787 10,114,668,455
5 Other Assets
Prepayments 738,408 58,114,344 674,089 52,916,177
Interest receivable on term placement 497,475 39,152,353 601,798 47,241,336
1,235,883 97,266,696 1,275,887 100,157,513
6 Borrowings from other banks, financial institutions and agents

Demand borrowings 6.1 84,568,473 6,655,724,888 71,300,526 5,597,120,183
Term borrowings 6.2 289,221,676 22,762,382,199 235,082,295 18,454,030,682
373,790,149 29,418,107,087 306,382,821 24,051,150,866
6.1 Demand Borrowings

In interest bearing account with
Eastern Bank Limited (DBU) 84,568,473 6,655,724,888 71,300,526 5,597,120,183
84,568,473 6,655,724,888 71,300,526 5,597,120,183
6.2 Term Borrowings
Inside Bangladesh
AB Bank Limited 3,000,000 236,106,600 5,000,000 392,501,500
Bank Asia Limited 14,000,000 1,101,830,800 10,000,000 785,003,000
Commercial Bank of Ceylon plc 5,000,000 393,511,000 5,000,000 392,501,500
Dhaka Bank Limited 26,000,000 2,046,257,200 20,000,000 1,570,006,000
Dutch Bangla Bank Limited 10,000,000 787,022,000 - -
Jamuna Bank Limited 3,000,000 236,106,600 - -
National Bank Limited 3,000,000 236,106,600 - -
Prime Bank Limited - - 10,000,000 785,003,000
Southeast Bank Limited 5,000,000 393,511,000 - -
United Commercial Bank Limited 5,000,000 393,511,000 - -
Uttara Bank Limited 4,000,000 314,808,800 - -
Habib Bank Limited - - 800,000 62,800,240
Investment Promotion & Financing Facility (IPFF), Bangladesh Bank 5,097,490 401,183,677 5,440,045 427,045,165
83,097,490 6,539,955,277 56,240,045 4,414,860,405
2016 2015
Note
USD BDT USD BDT
Outside Bangladesh
Asian Development Bank Phillippines - - 4,996,698 392,242,308
Banca Ubae Spa, Spain - - 5,000,000 392,501,500
Deutsche Investitions-Und 36,000,000 2,833,279,200 48,000,000 3,768,014,400
Entwicklungsgesellschaft Mbh (DEG)
FMO, Netherland 8,000,000 629,617,600 12,000,000 942,003,600
ICICI Bank, Dubai 26,247,198 2,065,712,208 17,886,596 1,404,103,182
ICICI Bank, Hong Kong 6,000,000 472,213,200 - -
International Finance Corporation (IFC), USA 40,000,000 3,148,088,000 30,000,000 2,355,009,000
Mashreq Bank, NY, USA 6,371,917 501,483,859 - -
National Bank of Ras Al-Khaimah, KSA 5,915,730 465,580,971 - -
PROPARCO, France 16,000,000 1,259,235,200 16,000,000 1,256,004,800
Standard Chartered Bank, Hong Kong 3,923,949 308,823,399 - -
Standard Chartered Bank, Singapore 35,837,533 2,820,492,687 42,785,256 3,358,655,437
United Bank Limited, New York - - 2,173,699 170,636,051
United Bank Limited, Dubai 16,548,177 1,302,377,953 - -
Wells Fargo, USA 5,279,683 415,522,646 - -
206,124,186 16,222,426,922 178,842,250 14,039,170,278
Total 289,221,676 22,762,382,199 235,082,295 18,454,030,682
6.1.a Classification based on type of security

Secured - - - -
Unsecured 373,790,149 29,418,107,087 306,382,821 24,051,150,866
373,790,149 29,418,107,087 306,382,821 24,051,150,866
7 Deposits and other accounts

Current deposits and other accounts 7.1 4,064,677 319,899,058 2,074,160 162,822,173
4,064,677 319,899,058 2,074,160 162,822,173
7.1 Current deposits and other accounts:

Current account 2,856,628 224,822,918 1,075,945 84,461,998
Other Accounts 7.1.a 1,208,049 95,076,139 998,215 78,360,175
4,064,677 319,899,058 2,074,160 162,822,173
7.1.a Other Accounts:

Margin on Facility 1,208,049 95,076,139 998,215 78,360,175
1,208,049 95,076,139 998,215 78,360,175
8 Other liabilities
Provision for taxation 8.1 - - - -
Provision for unclassified loans and advances 3,080,751 242,461,421 2,564,774 201,335,529
(including provision for off balance sheet items)
Interest payable on borrowing 2,152,959 169,442,611 1,217,934 95,608,156
Privileged creditors 24,132 1,899,231 19,244 1,510,675
Sundry creditors 2,470 194,394 145 11,383
5,260,311 413,997,658 3,802,097 298,465,743
8.1 Provision for tax of the unit is accounted for in the books of Eastern Bank Limited.
9 Foreign currency translation difference

The foreign currency translation difference is a net result of exchange difference of year end standard mid rate and monthly average
of standard mid rate arising from translation of functional currency to presentation currency. Assets and liabilities of OBU have been
presented into Taka (which is functional currency of the Bank) using year end standard mid rate of exchange of the Bank i.e. USD 1
= Tk. 78.7022 (2015: Tk. 78.5003) and incomes and expenses are translated using monthly average of standard mid rate of exchange
(USD 1= Tk. 78.4587).
10 Interest income
Interest on advances 14,564,842 1,142,738,563 10,882,205 848,229,789
Interest on placement with other banks 2,430,566 190,699,049 2,104,708 164,054,624
16,995,408 1,333,437,611 12,986,913 1,012,284,413
2016 2015
Note
USD BDT USD BDT
11 Interest paid on deposits and borrowings

Interest on borrowings 12,143,652 952,775,126 8,730,251 680,492,517
12,143,652 952,775,126 8,730,251 680,492,517
12 Commission, exchange and brokerage

Fees & commission 813,184 63,801,361 327,635 25,538,027
Exchange gain/(loss) net off exchange gains* 19,573 1,535,639 (1,810) (141,078)
832,757 65,337,000 325,825 25,396,949
*The net result of exchange differences arising from day to day transactions & revaluation of monetary items are recognised in profit
and loss account as per BAS 21 'The effect of changes in foreign exchange rates'.
13 Other Operating Income

Swift charges recovered 46,225 3,626,753 43,477 3,388,880
Postage charges recovered 17,924 1,406,294 8,118 632,769
Service charges (others) 74,117 5,815,122 51,907 4,045,970
138,266 10,848,169 103,502 8,067,619
14 Operating Expenses
Account maintenance & processing fees 682,842 53,574,858 594,084 46,306,752
Other charges 1,462 114,725 937 73,026
684,304 53,689,583 595,021 46,379,778
15 Provision for loans and advances

General provision 515,977 40,482,852 970,893 75,677,718
515,977 40,482,852 970,893 75,677,718
16 Surplus in profit and loss account

Opening balance 3,120,078 243,199,132 3,149,657 244,451,219
Add: Profit during the year 4,622,498 362,675,220 3,120,076 243,198,967
7,742,576 605,874,352 6,269,733 487,650,186
Less: Transferred to main operation during the year (3,120,078) (243,199,132) (3,149,655) (244,451,024)
Closing balance 4,622,498 362,675,220 3,120,078 243,199,163
17 Cash received from commission, exchange and brokerage

Commission, exchange and brokerage 832,757 65,337,000 325,825 25,396,949
832,757 65,337,000 325,825 25,396,949
18 Cash received from other operating activities

Service charges, SWIFT charges etc. 138,266 10,848,169 103,502 8,067,588
138,266 10,848,169 103,502 8,067,588
19 Paid for operating expenses

Operating expenses (684,304) (53,689,583) (595,021) (46,379,778)
(684,304) (53,689,583) (595,021) (46,379,778)
20 Cash and cash equivalent

Balance with other banks & FIs 99,805,700 7,854,928,148 87,920,721 6,901,803,008
Money at call and short notice 99,805,700 7,854,928,148 87,920,721 6,901,803,008
FINANCIAL REPORTS OF THE

SUBSIDIARIES
Auditor’s Report
to the shareholders of EBL Securities Limited
We have audited the accompanying Financial Statements of EBL Securities Ltd. which comprise the Statement of Financial Position as at 31st
December, 2016 and the Statement of Comprehensive Income, Statement of Changes in Equity and Statement of Cash Flows for the year then
ended, and a summary of significant accounting policies and other explanatory information.
Management Responsibility for the Financial Statements:
Management is responsible for the preparation and fair presentation of these financial statements in accordance with Bangladesh Financial
Reporting Standards (BFRS), the Company Act, 1994 and other applicable laws and regulations, and for such internal control as management
determines is necessary to enable the preparation of Financial Statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility:
Our responsibility is to express an independent opinion on these financial statements based on our audit. We conducted our audit in accordance
with Bangladesh Standards on Auditing (BSA). Those standards require that we comply with ethical requirements and plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures
selected depend on the auditors’ judgment including the assessment of the risk of material misstatement of the financial statements, whether due
to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation
of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used
and the reasonableness of accounting estimates made by management, as well as, evaluating the overall presentation of the financial statements.
Opinion:
In our opinion, the financial statements present fairly in all material respect, the financial position of EBL Securities Ltd. as at 31 December 2016
and of its financial performance and its cash flows for the year then ended in accordance with Bangladesh Financial Reporting Standards (BFRSs)
and comply with the Company Act , 1994 and other applicable rules and regulations.
We also report that:
i. we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purposes of our
ii. in our opinion, proper books of account as required by law have been kept by the company so far as it appeared from our examination of
those books; and
iii. the statement of financial position and statement of comprehensive income dealt with the report are in agreement with the books of account
and returns.
Dhaka, 25 January 2017 Khan Wahab Shafique Rahman & Co.


Statement of Financial Position
2016 2015
Particulars Note
Taka Taka
ASSETS
A. Non-Current Assets:
Property, Plant & Equipment 4 12,307,328 8,413,553
TREC of DSE & CSE at Cost 5 201,506,000 201,506,000
213,813,328 209,919,553
B. Current Assets:
Advances, Deposits & Prepayments 6 8,658,754 11,045,387
Advance Income Tax 7 31,424,954 26,421,111
Accounts Receivable 8 250,066,125 11,978,434
Loan to Customer 9 1,294,701,118 1,614,062,338
Investments in securities 10 1,348,604,849 413,534,278
Cash & Bank Balance 11 781,028,153 272,875,386
3,714,483,953 2,349,916,934
Total Assets (A+B) 3,928,297,281 2,559,836,487
EQUITY & LIABILITIES

C. Share Holders Equity:
Share Capital 12 900,000,000 900,000,000
Share Money Deposit 12.1 600,000,000 -
Retained Earnings 13 75,335,929 67,705,260
1,575,335,929 967,705,260
D. Non-Current Liabilities - -
E. Current Liabilities:
Accounts Payable 14 636,156,532 183,880,073
Borrowings from Bank & others 15 1,363,788,202 1,173,860,176
Liabilities for Expenses 16 12,864,800 15,934,003
Other Liabilities 17 305,432,704 169,562,351
Provision for Tax 18 34,719,114 48,894,623
2,352,961,352 1,592,131,227
Total Equity & Liabilities (C+D+E) 3,928,297,281 2,559,836,487
Net Asset Value Per Share 1,750.37 1,075.23
The annexed notes form an integral part of these financial statements
Managing Director Director Chairman
Signed in terms of our annexed report of even date


Statement of Comprehensive Income
2016 2015
Particulars Note
Taka Taka
A. Revenue:
Brokerage Commission 19 137,604,289 102,397,110
Less: Direct Expenses (17,030,063) (15,757,100)
Net Brokerage Commission 120,574,226 86,640,010
Investment Income 20 61,735,313 44,568,132
Interest Income 21 144,757,587 241,281,491
Less: Interest Expense (138,950,420) (164,987,802)
Net Interest Income 5,807,167 76,293,689
Other Operating Income 22 2,826,330 2,760,457
Total Income 190,943,036 210,262,288
B. Expenses:
Office & Administrative Expenses 23 72,277,884 56,051,022
Bank Charge and Other Expenses 24 1,928,963 1,876,329
Total Expense 74,206,847 57,927,351
C. Operating Profit (A-B) 116,736,189 152,334,936

Provision for loss on margin loan 4,201,011 -
Provision (released)/made on revaluation of quoted securities 25 (19,881,549) 10,417,408
Profit/Loss Before Tax 132,416,727 141,917,528
Income Tax Expenses 26 34,786,058 49,196,544
Net Profit After Tax 97,630,669 92,720,984
Earnings Per Share (EPS) 27 108.48 103.02
The annexed notes form an integral part of these financial statements.
Signed in terms of our annexed report of even date
Khan Wahab Shafique Rahman & Co.

Dhaka, 25 January 2017 Chartered Accountants

Changes in Shareholders Equity
Figures in taka
Share Money Retained

Particulars Paid up Capital Total
Deposit Earnings
Balance as on 01 January 2016 900,000,000 - 67,705,260 967,705,260
Add: Net Profit for the year - - 97,630,669 97,630,669
Interim Dividend - - (90,000,000) (90,000,000)
Share Money Deposit - 600,000,000 - 600,000,000
Balance as on 31 December 2016 900,000,000 600,000,000 75,335,930 1,575,335,929
for the year ended 31 December 2015 Figures in taka
Share Money Retained

Particulars Paid up Capital Total
Deposit Earnings
Balance as on 01 January 2015 400,000,000 - 29,984,277 429,984,277
Add: Net Profit for the year - - 92,720,984 92,720,984
Interim Dividend - - (55,000,000) (55,000,000)
Add: Additional Capital raised during the year 500,000,000 - - 500,000,000
Balance as on 31 December 2015 900,000,000 - 67,705,260 967,705,260


Statement of Cash Flows
2016 2015
Taka Taka
Cash Flows from Operating Activities:
Net Profit/(Loss) during the year 97,630,669 92,720,984
Depreciation 2,582,570 2,852,311
Amortization 310,796 310,796
Gain on sales of assets - (785,902)
Net Profit/(Loss) after Depreciation 100,524,035 95,098,189
Changes in Working Capital:

Advances, Deposits & Pre-payments 2,386,633 (9,411,305)
Advance Income Tax (5,003,843) 1,894,491
Receivable (238,087,691) 25,684,161
Investment in Securities (935,070,571) (218,883,004)
Loan to Customer 319,361,220 (248,659,954)
Payable 452,276,459 (8,829,780)
Bank Overdraft 189,928,026 (256,721,937)
Liabilities for Expenses (3,069,203) 4,581,239
Other Liabilities 135,870,352 64,008,982
Interim Dividend (90,000,000) (55,000,000)
Provision for Tax (14,175,509) 18,951,524
(185,584,127) (682,385,583)
A. Net Cash provided from/ (used in) Operating Activities: (85,060,092) (587,287,393)
Cash Flows from Investing Activities:
Sale/Disposal of assets - 951,000

Fixed Assets Purchased (6,787,141) (4,314,757)
B. Net Cash provided from/ (used in) Investing Activities (6,787,141) (3,363,757)
Cash Flows from Financing Activities:

Share Money Deposit 600,000,000 -
Paid-up Capital - 500,000,000
C. Net Cash provided from/ (used in) Financing Activities 600,000,000 500,000,000
Net increase/(decrease) in Cash during the Year (A+B+C) 508,152,767 (90,651,150)

Add: Opening Cash & Bank Balance 272,875,386 363,526,535
Closing Cash & Bank Balance 781,028,152 272,875,386
Net Operating Cash Per Share (94.51) (652.54)


1 Reporting Entity:
1.1 Legal status of the company:
EBL Securities Ltd. is one of the leading brokerage houses domiciled in Bangladesh which has been constituted by changing the name
of LRK Securities Limited, limited by shares incorporated under the Companies Act 1994 incorporation no. C-32161(1282)/97. It was
incorporated as Private Limited Company and as on 10 May 2015 it has been converted into a Public Limited Company.
EBL Securities Limited is the TREC holder (Trading Right Entitlement Certificate) of both Dhaka Stock Exchange (DSE) and
Chittagong Stock Exchange (CSE) bearing certificate no. 026 and 021 dated 03 November 2013 and 28 October 2013 respectively
(Previous membership no. 026 and 021 of DSE and CSE respectively).
1.2 Nature of business activities:
The principal activities of the company during the year were to buy, sell, deal and invest in shares, stocks, debentures and other
securities, to become TREC holder of stock exchange in Bangladesh and/ or elsewhere and undertake all the functions of a Stock
Exchange TREC holder.
2 Basis of Preparation:
2.1 Statement of compliance:
The financial statements are prepared on the historical cost basis and therefore, did not take into consideration the effect of inflation.
The financial statements have been prepared and the disclosures of information have been made in accordance with the Companies
Act, 1994, the Securities and Exchange Rules, 1987, the listing Rules of Dhaka Stock Exchange, Guidelines from Bangladesh Bank,
Bangladesh Accounting Standards (BAS) and Bangladesh Financial Reporting Standards (BFRS) and other applicable laws and
regulations.
2.2 Regulatory compliances:
EBL Securities Ltd. also registered with the Bangladesh Securities and Exchange Commission (BSEC) to act as Stock Dealer for
carrying its own investment in the capital market. It also extends margin loan to its clients against their margin for investment in the
listed securities. The required margin level is monitored daily and pursuant to establish guidelines, customers are required to deposit
additional margin to reduce the position, where necessary.
EBL Securities Ltd. encompasses a wide range of services having registered with the Securities and Exchange Commission to act as
“custody participant” of Central Depository of Bangladesh Limited (CDBL).
2.3 Basis of accounting:
The financial statements except for cash flow information have been prepared on accrual basis of accounting.
2.4 Use of estimates and assumptions:
Preparation of financial statements requires management to make judgments, estimates and assumptions that affect the reported
amount of assets and liabilities, income and expenses. These financial statements contained information about the assumptions it made
about the future and other major sources of estimation uncertainty at the end of the reporting period that have a significant risk of
resulting in a material adjustment to the carrying amount of assets, liabilities, income and expenses within the next financial year.
In accordance with the guidelines as prescribed by BAS 37: Provisions, Contingent Liabilities and Contingent Assets. Provisions are
recognized in the flowing situation:
• When the company has an obligation as a result of past events,
• When it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and
• Reliable estimates can be made of the amount of the obligation.
2.5 Consistency:
In accordance with the BFRS framework for the presentation of financial statements together with BAS 1 and BAS 8, EBL Securities
applies the accounting disclosure principles consistently from one period to the next. Where selecting and applying new accounting
policies, changes in accounting policies applied, corrections of errors, the amounts involved are accounted for and retrospectively in
accordance with the requirement of BAS 8. We however, have applied the same accounting principles in 2016 as was for in financial
statements for 2015.
3 Significant Accounting Policies:
The accounting polices set out below have been applied consistently to all periods presented in these financial statements:
3.1 Property, Plant & Equipment and depreciation:
These are measured at cost less accumulated deprecation. Cost includes expenditures that are directly attributable to the acquisition of
the property, plant and depreciation has been charged on additions irrespective of date when the related assets are put into use and no
depreciation is charged for the month of disposal. Depreciation is providing at the following rates on straight-line basis in accordance
with BAS 16 over the periods appropriate to the estimated useful lives of the different types of assets:
Category of assets Rate of depreciation
Furniture & Fixture 15%
Television & Multimedia 20%
Computer & Accessories 20%
Generator 15%
Office Equipment 15%
Office Decoration 15%
Vehicles 15%
3.2 Intangible assets and amortization:
Intangible assets are recognized if it is probable that future economic benefits that are attributable to the asset will flow to the company
and the cost of the asset can be measured reliably in accordance with BAS 38: Intangible Assets. Accordingly, these assets are stated in
the Statement of Financial Position at cost less accumulated amortization.
Subsequent expenditure on intangible assets is capitalized only when it increases the future economic benefits embodied in the specific
assets to which it relates. All other expenditure is recognized as incurred.
3.3 Impairment:
Financial assets:
A financial asset is assessed at each reporting date to determine whether there is any objective once that it is impaired. A financial asset
is considered to be impaired if objective once indicates that one or more have occurred indicating a negative effect on the estimated
future cash flows from the asset. However, no such condition that might be suggestive of a heightened risk of impairments of assets
existed at the reporting date.
Non financial assets:
The carrying amounts of non-financial assets are reviewed at each reporting date to determine whether there is any indication of
impairment. An impairment loss is recognized in Statement of Comprehensive Income if the carrying amount of an asset exceeds
its estimated recoverable amount. However, no such condition that might be suggestive of a heightened risk of impairment of assets
existed at the reporting date.
3.4 Cash and Bank Balance:
Considering the provisions of BAS-1 and BAS-7, cash in hand and bank deposits, which were held and available for use of the company
without any restriction have been stated as cash and cash equivalent.
The net cash flow from operating activities is determined by adjusting profit for the period under indirect method as per BAS-7 “Cash
Flow Statement”.
3.5 Receivable:
Trade receivables are stated at nominal values as reduced by the appropriate allowances for estimated doubtful amounts. No such
receivables are accounted for if the loans are classified as bad and loss. Receivables include the amount receivable from both DSE and
CSE against daily transaction settlement and dividend income from investments etc.
3.6 Margin loan/Loan to customer:
EBL Securities Ltd. extends margin loan to the portfolio investors at an agreed ratio (between investors deposit and loan amount) of
purchased securities against the respective investor account. The investors are to maintain the margin as per set rules and regulations.
The margin is monitored on daily basis as it changes due to change in market price of shares. If the margin falls below the minimum
requirement, the investors are required to deposit additional fund to maintain margin as per rules otherwise the securities are sold to
bring the margin to the required level.
3.7 Investment in securities:
Investments in listed securities are recognized at cost. Quarterly impairment test is carried out by comparing cost with market price.
In case of diminution of market value compared to cost, provision is made on portfolio basis but no unrealized gain is booked when
market value exceeds cost.
3.8 Authorized Share Capital:
Authorized capital of the company has been increased from BDT 100 crore to BDT 200 crore with the approval of shareholders in its
EGM held on 28 August 2016 which was duly certified by Registrar of Joint Stock Companies (RJSC) .The Company has been converted
to Public Limited Company and the related changes in the Memorandum & Articles of Association was duly certified by Registrar of
Joint Stock Companies (RJSC) on 01 July 2015.
3.9 Share Money Deposit:
EBL Securities Ltd. decided to increase its paid up capital from 90.00 crore to 150.00 crore as per decision of company’s 92nd Board
Meeting held on 04 August 2016.
The shareholder of EBLSL i.e. Eastern Bank Ltd. deposited BDT 60.00 crore through pay order on #1586434 dated 10 October 2016 as
share money deposit. Letter of allotment will be issued after completion of necessary formalities with RJSC and BSEC.
3.10 Paid up Capital:

Shareholder position of EBL Securities Limited as on 31 December 2016 is as follows:
Name of member Shareholders No of Shares

Eastern Bank Limited (8,99,994 ordinary shares of Tk. 1000 each) 8,99,994
Other Shareholders (6 ordinary shares of Tk. 1000 each) 6
Total 9,00,000
3.11 Payables:
Trade and other payables are stated at their nominal values.
3.12 Due from/to related party:
Due from/to related party is stated at their nominal values.
3.13 Accrued expenses and other liabilities:
Liabilities are recognized for the goods and services received, whether paid or not for those goods and services. Payables are not interest
bearing and are stated at their nominal values.
3.14 Provisions:
Provision is recognized in the statement of financial Position when the company has a legal and constructive obligation as a result of
past events and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a
reliable estimate thereof can be made.
3.15 Revenue recognition:
Revenue, which comprises of brokerage commission, service charges and capital gain, is recognized in accordance with Bangladesh
Accounting Standard (BAS) 18: Revenue Recognition.
3.16 Income from margin loan:
Income from margin loan is recognized on accrual basis. Such income is calculated considering daily margin loan balance of the
respective customers. Income is recognized on quarterly rest.
3.17 Dividend income:
Dividend income from ordinary shares is recognized when the shareholders’ legal rights to receive payments have been established i.e.
during the period in which dividend is declared in the Annual General Meeting. Dividend declared but not received is recognized as
deemed dividend.
3.18 Gain/loss on sale of securities:
Capital gain/loss on disposal of securities listed in the stock exchange is recorded on realized basis i.e. only when securities are sold in
the market.
3.19 Suspense interest account:
Suspense interest account is created against interest income from negative equity customers. Since the negative equity customers are
temporarily unable to repay their debt, interest income accrued from those negative equity clients during the year 2016 have been
transferred into the suspense interest account.
3.20 Income tax expenses:
Income tax expenses comprise current and deferred tax but no deferred tax has been calculated. Income tax expense is recognized in
the Statement of Comprehensive Income except to the extent that it relates to items recognized directly in equity, in which case it is
recognized in equity.
3.21 Events after the Reporting Period:
There are no such events after the reporting period existed at the end of the reporting period.
3.22 Currency:
The amounts in the Financial Statements have been rounded off to the nearest integer in Bangladeshi Taka.
3.23 General:
Previous year’s figures have been re-arranged/re-classified, where considered necessary to conform to current year’s presentation.

Auditor’s Report
to the shareholders of EBL Investments Limited
We have audited the accompanying Financial Statements of EBL Investments Ltd. which comprise the Statement of Financial Position as at 31st
December, 2016 and the Statement of Comprehensive Income, Statement of Changes in Equity and Statement of Cash Flows for the year then
ended, and a summary of significant accounting policies and other explanatory information.
Reporting Standards (BFRS), the Company Act 1994 and other applicable laws and regulations, and for such internal control as management
Opinion:
In our opinion, the financial statements present fairly in all material respect, the financial position of EBL Investments Ltd. as at 31 December
2016 and of its financial performance and its cash flows for the year then ended in accordance with Bangladesh Financial Reporting Standards
(BFRSs) and comply with the Company Act 1994 and other applicable rules and regulations.
those books; and
iii. the statement of financial position and statement of comprehensive income dealt with the report are in agreement with the books of account
and returns.


2016 2015
Particulars Note
Taka Taka
A. ASSETS
Non-Current Assets:
Tangible Assets:
Property, Plant & Equipment 4 444,672 450,780
Intangible Assets
Software 5 609,096 578,375
1,053,768 1,029,155
B. Current Assets:
Cash & Bank balance 6 15,064,923 18,329,607
Advances, Deposit & Prepayments 7 120,205,573 182,700,000
Margin Loan 8 62,873,663 41,778,101
Accounts Receivable 9 10,007,483 5,946,556
Investments 10 172,590,508 90,891,594
380,742,150 339,645,858
TOTAL ASSETS (A+B) 381,795,918 340,675,014
EQUITY & LIABILITIES

C. Share Holders Equity:
Paid up capital 11 300,000,000 300,000,000
Retained earnings 12 30,964,178 13,880,203
Total Shareholders' Equity 330,964,178 313,880,203
D. Current Liabilities
Trade Payable 13 13,856,155 4,419,364
Current tax liability/(assets) 14 3,557,759 1,966,002
Provision for Diminution in value of Investments 15 11,651,804 15,784,591
Other Liabilities 16 21,766,023 4,624,856
50,831,740 26,794,812
Total Liabilities (C+D) 381,795,918 340,675,014
The annexed notes form an integral part of the financial statements
Signed in terms of our annexed report of even date.


2016 2015
Particulars Note
Taka Taka
A. Operating Income
Fees & Commission 17 7,738,069 5,676,611

Income from Investment 18 25,634,398 14,055,413
Interest Income 19 27,390,495 33,264,795
Total operating income 60,762,962 52,996,818
B. Operating Expense
Administrative Expenses 20 18,414,580 16,327,296

Financial Expenses 21 50,289 189,082
Total operating expense 18,464,869 16,516,378
C. Operating Profit before Provision(A-B) 42,298,093 36,480,441
Provision (Released)/charged for diminution in value of investments 22 (4,132,787) 7,659,133
Profit before Provision for tax 46,430,880 28,821,308
Current tax expenses 23 9,346,904 10,217,623
Net profit after tax 37,083,976 18,603,685
Earning per share 24 12.36 6.20

The annexed notes form an integral part of the financial statements.

Signed in terms of our annexed report of even date.


Particulars Paid up Capital Retained Earnings Total
Balance as on 01 January 2016 300,000,000 13,880,202 313,880,202
Add: Net Surplus/ (Deficit) for the year - 37,083,976 37,083,976
Interim Dividend Paid - 20,000,000 20,000,000
Balance as on 31 December 2016 300,000,000 30,964,178 330,964,178

Figures in Taka
Particulars Paid up Capital Retained Earnings Total
Add: Net Surplus/ (Deficit) for the year - 18,603,685 18,603,685
Interim Dividend Paid - 20,000,000 20,000,000
Balance as on 31 December 2015 300,000,000 13,880,203 313,880,203


2016 2015
Particulars
Taka Taka
A. Cash flows from operating activities
Net Profit/(Loss) during the year 37,083,976 18,603,685

Add: Depreciation and Amortization 294,336 238,408
Net Profit/(Loss) after Depreciation 37,378,312 18,842,093
Changes in other operating assets/liabilities (20,324,046) (90,995,754)

Advances,Deposit & Prepayments 62,494,427 (82,500,001)
Margin Loan (21,095,562) 6,843,915
Accounts receivable (4,060,927) 3,173,156
Advance Income Tax 2,440,913 1,382,465
Investment (81,698,914) (21,217,830)
Trade payable 9,436,791 (8,398,730)
Provision for Tax (849,156) (1,560,528)
Other liabilities 13,008,381 11,281,798
Net cash flow from operating activities 17,054,265 (72,153,661)
B. Cash flows from investing activities

Fixed Assets (318,950) (234,704)
Net cash flow from investing activities (318,950) (234,704)
C. Cash flows from financing activities
Cash Dividend (20,000,000) (20,000,000)
Net cash flow from financing activities (20,000,000) (20,000,000)
D. Net increase/(decrease) in cash and cash equivalents (A+B+C) (3,264,685) (92,388,365)
E. Opening cash and Bank balance 18,329,607 110,717,971
F. Closing cash and Bank balance 15,064,923 18,329,606
Closing cash and Bank balance represents

Cash in hand 9,832 9,144
Stamp in hand 11,200 41,950
Balances with other banks and financial institutions 15,043,891 18,278,513
15,064,923 18,329,607
Dhaka, 25 January 2017


1 Reporting Entity:
1.1 Legal status and nature of the Company
EBL Investments Limited (here-in-after referred to as “EBL Investments Limited (EBLIL)” or “the Company”) was incorporated in
Bangladesh with the Registrar of Joint Stock Companies and Firms (RJSCF) vide registration no. C 81417/09 dated 30 December
2009 as a Private Limited Company under the Companies Act, 1994 and obtained required marchant banking license from BSEC
in 27 January 2013. This Company is a fully owned subsidiary of Eastern Bank Limited. EBLIL is well equipped with skilled human
resources and business set up to start full fledged operations from July,2013.
1.2 Nature of business activities
EBLIL has started full fledge merchant banking operation during early second half of 2013. The activities of the Company include
services broadly classified as fees and commission based and fund based services, such as underwriting of securities, issue management,
portfolio management, corporate advisory services etc.
2 Basis of Preparation:
The financial statements are prepared on the historical cost convention and therefore, did not take into consideration the effect of
inflation. The financial statements have been prepared and the disclosures of information have been made in accordance with the
companies Act, 1994, Bangladesh Financial Reporting Standards (BFRS) and other applicable laws and regulations.
2.2 Basis of accounting:
2.3 Consistency:
In accordance with the BFRS framework for the presentation of financial statements together with BAS 1 and BAS 8, EBL Investments
Ltd. applies the accounting disclosure principles consistently from one period to the next. Where selecting and applying new accounting
policies, changes in accounting policies applied, corrections of errors, the amounts involved are accounted for and retrospectively in
accordance with the requirement of BAS 8. We however, have applied the same accounting principles in 2016 as in financial statements
for 2015.
The financial statements of the Company covers a period from 1 January 2016 to 31 December 2016 and is followed consistently.
3 Significant Accounting Policies:
The accounting polices set out below have been applied consistently to all periods presented in these financial statements:
3.1 Tangible Assets
Property, Plant & Equipment and its Depreciation
Recognition and measurement
Assets are recognised initially at cost and subsequently at cost less accumulated depreciation in compliance with BAS 16, “Property
Plant and Equipment”. The cost of acquisition of an asset comprises its purchase price and any direct cost for bringing the assets to its
working condition for its intended use. Expenditure incurred after the assets have been put into use, such as repairs and maintenance
is normally charged off as revenue expenditure in the period in which it is incurred. Software and all upgradation /enhancement are
generally charged off as revenue expenditure unless they bring similar significant additional benefits.
When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major
components) of property plant and equipment.
Subsequent costs
The cost of replacing part of an item of property, plant and equipment is recognised in the carrying amount of an item if it is probable
that the future economic benefits embodied within the part will flow to the Company and its cost can be measured reliably. The costs
of the day to day servicing of property, plant and equipment are recognised in the profit and loss account as incurred.
Depreciation
Depreciation is based on the cost of an asset less its residual value. Significant components of individual assets are assessed and if a
component has a useful life that is different from the remainder of that asset, that component is depreciated separately.
Depreciation is recognised in profit or loss on a straight-line basis over the estimated useful lives of each components of an item of
property, plant and equipment. Depreciation is charged at the following rates starting from the month of acquisition of assets:
Category of assets Rate of depreciation
Building 2.50%
Furniture and fixtures 10%
Office equipments 20%
Vehicle 20%
Other Accessories 20%
No depreciation is charged in the month of disposal.
Disposal of fixed assets

Gains and losses on disposal of an item of property plant and equipment are determined by comparing the proceeds from disposal
with the carrying amount of the property plant and equipment disposed off and is recognised net with “other income” in profit and
loss account.
3.2 Intangible assets and amortization:
Intangible assets are recognized if it is probable that future economic benefits that are attributable to the asset will flow to the company
and the cost of the asset can be measured reliably in accordance with BAS 38: Intangible Assets. Accordingly, these assets are stated in
the Statement of Financial Position at cost less accumulated amortization @ 15% and accumulated impairment losses. Intangible assets
include software, integrated systems alongwith related hardware.
Subsequent expenditure on intangible assets is capitalized only when it increases the future economic benefits embodied in the specific
assets to which it relates. All other expenditure is recognized as incurred.
3.3 Cash and Bank balance:
Considering the provisions of BAS-1 and BAS-7, cash in hand and bank deposits, which were held and available for use of the company
without any restriction have been stated as cash and cash equivalent.
The net cash flow from operating activities is determined for the period under indirect method as per BAS-7 “Cash Flow Statement”
3.4 Books of accounts
The Company maintains its books of accounts in electronic form through Mbank software.
3.5 Risk and uncertainty for use of estimates (Provisions):
Preparation of financial statements requires management to make judgments, estimates and assumptions that affect the reported
amount of assets and liabilities, income and expenses. These financial statements contained information about the assumptions it
made about the future and other major sources of estimation uncertainty at the end of the reporting period that have a significant risk
of resulting in a material adjustment to the carrying amount of assets, liabilities, income and expenses within the next financial year.
In accordance with the guidelines as prescribed by BAS 37: Provisions, Contingent Liabilities and Contingent Assets. Provisions are
recognized in the following situation:
• When the company has an obligation as a result of past events,
• When it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and
• Reliable estimates can be made of the amount of the obligation.
Provision is recognized in the Statement of Financial Position when the company has a legal and constructive obligation as a result of
past events and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a
reliable estimate thereof can be made.
3.6 Revenue Recognition
“Revenue” is recognised when it is probable that the economic benefits associated with the transaction will flow to the Company and
the amount of revenue and the cost incurred or to be incurred in respect of the transaction can be measured reliably in accordance with
Bangladesh Accounting Standards (BAS) 18 : Revenue Recognition.
3.7 Fees and Commission:
Fees and Commission income arises on services rendered by the company and recognized on and accrual basis.
3.8 Income from margin loan:
Income from margin loan is recognized on accrual basis. Such income is calculated considering daily margin loan balance of the
respective customers.
3.9 Dividend income:
Dividend income from ordinary shares is recognized when the shareholders’ legal rights to receive payments have been established i.e.
during the period in which dividend is declared in the Annual General Meeting. Dividend declared but not received is recognized as
deemed dividend.
3.10 Events after the Reporting Period:
There are no such events after the reporting period existed at the end of the reporting period.
3.11 Currency:
The amounts in the Financial Statements have been rounded off to the nearest integer in Bangladeshi Taka.
3.12 General:
Previous year’s figures have been re-arranged/re-classified, where considered necessary, to conform to current year’s presentation.

Report of the directors
The directors submit their report together with the audited financial statements for the year ended 31 December 2016.
Principal activities
The principal activity of the Company is engaged in money lending business.
Business review
Pursuant to section 388(3)(b) of the Hong Kong Companies Ordinance, the Company is a wholly owned subsidiary of another body corporate
during the year. Accordingly, the Company is not required to prepare a business review for the financial year ended 31 December 2016 as required
by Schedule 5 of the Hong Kong Companies Ordinance.
Financial performance
The financial performance of the Company for the year ended 31 December 2016 and the financial position of the Company at that date are set
out on pages 5 and 6.
An interim dividend of HK$2.16 per share amounting to HK$3,046,521 was paid during the year.
Charitable donations
Donations made by the Company during the year amounted to HK$11,000.
Directors
The directors during the year and up to the date of this report were:
Iftekhar Ali Reza Md
In accordance with the Company’s Articles of Association, all directors are not subject to rotation or retirement at the annual general meeting and
are therefore continue in office at the forthcoming annual general meeting.
Directors’ material interests in transactions, arrangements and contracts that are significant in relation to the Company’s business
Save as disclosed in note 13 to the financial statements, no other transactions, arrangements and contracts of significance in relation to the
Company’s business to which the Company, or a specified undertaking of the Company, any one of its holding companies, its subsidiaries or
fellow subsidiaries was a party and in which a director of the Company had a material interest, whether directly or indirectly, subsisted at the end
of the year or at any time during the year.
Directors’ interests in the shares and debentures of the Company or any other body corporate
At no time during the year was the Company, or a specified undertaking of the Company, any one of its holding companies, its subsidiaries or
fellow subsidiaries a party to any arrangement to enable the directors of the Company to acquire benefits by means of acquisition of shares in or
debentures of the Company or any other body corporate.
Management contracts
No contract concerning the management and administration of the whole or any substantial part of the business of the Company was entered
into or existed during the year.
Other matters
At the date of this report, the directors are not aware of any circumstances not otherwise dealt with in this report or financial statements which
would render any amount stated in the financial statements misleading.
Auditor
The financial statements have been audited by Kingston C.P.A. Limited who retire and, being eligible, offer themselves for re-appointment at the
forthcoming annual general meeting.
On behalf of the Board
For and on behalf of

Chairman, Eastern Bank Limited

Hong Kong, 16 January 2017
Independent auditor’s report

to the members of EBL Finance (HK) Limited
(Incorporated in Hong Kong with limited liability)
Opinion
We have audited the financial statements of EBL Finance (HK) Limited (“the Company”) set out on pages 5 to 18, which comprise the statement
of financial position as at 31 December 2016, and the statement of comprehensive income, statement of changes of in equity and statement of cash
flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies.
In our opinion, the financial statements give a true and fair view of the financial position of the Company as at 31 December 2016, and of its
financial performance and its cash flows for the year then ended in accordance with Hong Kong Financial Reporting Standards (“HKFRSs”)
issued by the Hong Kong Institute of Certified Public Accountants (“HKICPA”) and have been properly prepared in compliance with the Hong
Kong Companies Ordinance (“HKCO”).
Basis for Opinion
We conducted our audit in accordance with Hong Kong Standards on Auditing (“HKSAs”) issued by the HKICPA. Our responsibilities under
those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are
independent of the Company in accordance with the HKICPA’s Code of Ethics for Professional Accountants (“the Code”), and we have fulfilled
our other ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained is sufficient and appropriate
to provide a basis for our opinion.
Other Information
The directors are responsible for the other information. The other information obtained at the date of this auditor’s report is information included
in the directors’ report, but does not include the financial statements and our auditor’s report thereon.
Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether
the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be
materially misstated.
Other Information (Cont’d)
If, based on the work we have performed on the other information obtained prior to the date of this auditor’s report, we conclude that there is a
material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of Directors and Those Charged with Governance for the Financial Statements
The directors are responsible for the preparation of the financial statements that give a true and fair view in accordance with HKFRSs issued by
the HKICPA and the HKCO, and for such internal control as the directors determine is necessary to enable the preparation of financial statements
that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the Company’s ability to continue as a going concern, disclosing,
as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the
Company or to cease operations, or have no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the fmancial statements as a whole are free from material misstatement, whether
due to fraud or error, and to issue an auditor’s report that includes our opinion. Our responsibility to express an opinion on these financial
statements based on our audit is solely to you, as a body, in accordance with section 405 of the HKCO, and for no other purpose. We do not
assume responsibility towards or accept liability to any other person for the contents of this report. Reasonable assurance is a high level of
assurance, but is not a guarantee that an audit conducted in accordance with HKSAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is located at the HKICPA’s website at:
http ://www.hkicpa.org.hk/en/standards-and-regulations/standards/auditing-assurance/auditre/ This description forms part of our auditor’s
report.
Kingston C.P.A. Limited

Certified Public Accountants, Hong Kong
Auditor, Tony K.Y. Ng; P.C. No. P01792
16 January 2017

Statement of Financial Position -31 December 2016
2016 2015
Note
HK$ HK$
ASSETS AND LIABILITIES
Non-current assets
Property, plant and equipment 9 69,143 96,589
Current assets
Bills financed 10 377,096,668 250,517,680
Interest receivables 3,776,996 1,839,725
Deposits and prepayments 167,460 159,380
Cash and bank balances 2,949,888 3,986,171
383,991,012 256,502,956
Current liabilities
Accruals and other payables 5,718,583 1,743,530
Temporary receipts 709,257 123,277
Receipt in advance 278,089 399,024
Amounts due to holding company 11 28,950 447,193
Loan from holding company 12 369,138,000 248,387,500
Provision for taxation 329,638 1,042,500
376,202,517 252,143,024
Net current assets 7,788,495 4,359,932
Net assets 7,857,638 4,456,521
EQUITY
Capital and reserves
Share capital
Issued and fully paid-up
1,410,000 ordinary shares 1,410,000 1,410,000
Retained profits 6,447,638 3,046,521
Total equity 7,857,638 4.456,521
Approved and authorised for issue by the board of directors on 16 January 2017
On behalf of the Board

For and on behalf of
Director Director
Eastern Bank Limited Iftekhar Ali Reza Md


2016 2015
Particulars Note
HK$ HK$
Revenue 4 18,766,540 14,253,815
Cost of sales (7,421,079) (5,160,295)
Gross profit 11,345,461 9,093,520
Other income and net gains or (losses) 4 216,791 115,044
Operating expenses (3,811,707) (3,398,134)
Operating profit 5 7,750,545 5,810,430
Finance costs - -
Profit before taxation 7,750,545 5,810,430
Income tax
Under provision in prior years (10,407)
Provision for the year 6 (1,292,500) (907,500)
(1,302,907) (907,500)
Profit for the year 6,447,638 4,902,930
Other comprehensive income for the year, net of income tax - -
Total comprehensive income for the year 6.447.638 4,902 930
Statement of Changes In Equity

Share capital Retained profits Total

Particulars
HK$ HK$ HK$
Balance at 1 January 2015 1,410,000 643,591 2,053,591
Net profit for the year - 4,902,930 4,902,930
Dividend (Note 8) - (2,500,000) (2,500,000)
Balance at 31 December 2015 1,410,000 3,046,521 4,456,521
Net profit for the year - 6,447,638 6,447,638
Dividend (Note 8) - (3,046,521) (3,046,521)
Balance at 31 December 2016 1,410,000 6,447,638 7,857,638

2016 2015
Particulars
HK$ HK$
Operating activities
Profit before taxation 7,750,545 5,810,430
Adjustment for:
Interest expense 7,421,079 5,160,295
Depreciation 73,011 63,898
Operating cash flows before working capital changes 15,244,635 11,034,623
Increase in bills financed (126,578,988) (175,581,134)
Increase in interest receivables (1,937,271) (1,491,782)
Increase in deposits and prepayments (8,080) (1,200)
Increase in accruals and other payables 3,975,053 818,082
Increase/(decrease) in temporary receipts 585,980 (7,358,630)
(Decrease)/increase in amounts due to holding company (418,243) 86,463
(Decrease)/increase in receipts in advance (120,935) 135,784
Increase in loan from holding company 120,750,500 173,987,500
Cash generated from operations 11,492,651 1,629,706

Tax paid (2,015,769) -
Interest paid (7,421,079) (5,160,295)
Net cash generated from/(used in) operating activities 2,055,803 (3,530,589)
Net cash used in from investing activities
Payments to acquire property, plant and equipment (45,565) (33,036)
Net cash used in financing activities

Dividend paid (3,046,521) (2,500,000)
Net decrease in cash and cash equivalents (1,036,283) (6,063,625)
Cash and cash equivalents at beginning of year 3,986,171 10,049,796
Cash and cash equivalents at end of year 2,949,888 3.986.171
Analysis of cash and cash equivalents at end of year

Cash and bank balances 2,949,888 3,986 171
Notes to the Financial Statements - 31 December 2016

1. Organisation and Operations
The Company is a private company incorporated in Hong Kong with limited liability. The address of its registered office is Unit 1201, 12th
Floor, Albion Plaza, 2-6 Granville Road, Tsimshatsui, Hong Kong.
The principal activity of the Company is engaged in money lending business.
2. Application of new and Revised Hong Kong Financial Reporting Standards

The financial statements have been prepared in accordance with all applicable Hong Kong Financial Reporting Standards (“HKFRSs”),
accounting principles generally accepted in Hong Kong and the requirements of the Hong Kong Companies Ordinance.
In the current year, the Company has applied for the first time a number of new standards, amendments and interpretations (“new HKFRSs”)
issued by the Hong Kong Institute of Certified Public Accountants (“HKICPA”), which are effective for accounting periods beginning on
or after 1 January 2016 with the exception as stated in the following paragraph. The adoption of the new HKFRSs had no material effect on
how the results and financial position for the current or prior accounting periods have been prepared and presented. Accordingly, no prior
period adjustment has been required.
The Company has not early applied the following new standards, amendments or interpretations that have been issued and relevant to the
Company but are not yet mandatory effective. The directors of the Company anticipate that the application of these standards, amendments
or interpretations will have no material impact on the results and the financial position of the Company.
HKFRS 9 Financial Instruments 1
BKFRS 15 Revenue from Contracts with Customers 1
HKFRS 16 Leases 2
1 Effective for annual periods beginning on or after 1 January 2018.
2 Effective for annual periods beginning on or after 1 January 2019.
3. Significant Accounting Policies

(a) Statement of compliance
The financial statements have been prepared in accordance with Hong Kong Financial Reporting Standards issued by the HKICPA. In
addition, the financial statements include applicable disclosures required by the Hong Kong Companies Ordinance.
(b) Basis of preparation of financial statements
The financial statements have been prepared under the historical cost convention, as modified by the available-for-sale financial assets,
financial assets and financial liabilities at fair value through profit or loss.
The financial statements have also been prepared under the accrual basis of accounting.
(c) Property, plant and equipment
Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses.
Depreciation is provided to write off the cost of items of property, plant and equipment over their estimated useful lives and after taking
into account of their estimated residual value, using the straight-line method. Assets held under finance leases are depreciated over their
expected useful lives on the same basis as owned assets or, where shorter, the term of the relevant lease.
The useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. The principal annual rates are as follows:-
Machineries and equipments 20% - 33.33%
Furniture and fixtures 20%
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from
the continued use of the asset. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal
proceeds and the carrying amount of the item) is included in the statement of comprehensive income in the year in which the item is
derecognised.
(d) Leasing
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the
lessee. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets of the Company at their fair value at the inception of the lease or, if lower, at the
present value of the minimum lease payments. The corresponding liability to the lessor is included in the statement of financial position as
a finance lease obligation. Lease payments are apportioned between finance charges and reduction of the lease obligation so as to achieve a
constant rate of interest on the remaining balance of the liability. Finance charges are charged directly to profit or loss.
Rentals payable under operating leases are charged to profit or loss on a straight-line basis over the term of the relevant lease.
(e) Impairment losses
At the end of each reporting period, the Company reviews the carrying amounts of its tangible assets to determine whether there is any
indication that those assets have suffered an impairment loss. If the recoverable amount of an asset is estimated to be less than its carrying
amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or
loss.
Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable
amount, in such a way that the increased carrying amount does not exceed the carrying amount that would have been determined had no
impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.
(f) Cash and cash equivalents
Cash and cash equivalents include cash at bank and on hand, short-term deposits held at banks, other short-term highly liquid investments
with original maturities of three months or less.
(g) Taxation Income tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year, using tax rates enacted or substantively enacted at the end of reporting
period, and any adjustment to tax payable in respect of previous year.
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial statements
and the corresponding tax base used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable
temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against
which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from
goodwill or from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects
neither the taxable profit nor the accounting profit.
Deferred tax is recognised in profit or loss, except when it relates to items that are recognised in other comprehensive income or charged
directly in equity, in which case the deferred tax is also recognised in other comprehensive income or directly in equity respectively.
(h) Bills financed and interest receivables
Bills financed and interest receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective
interest method, less provision for impairment. A provision for impairment of bills financed and interest receivables is established when
there is objective evidence that the Company will not be able to collect all amounts due according to the original terms of receivables.
The amount of the provision is the difference between the asset’s carrying amount and the present value of estimated future cash flows,
discounted at the effective interest rate. The amount of the provision is recognised in profit or loss.
(i) Other payables
Other payables are recognised initially at fair value and subsequently stated at amortised cost. The difference between the proceeds and the
amount payable is recognised over the period of the payable using the effective interest method.
(j) Foreign currencies
(i) Functional and presentation currency
Items included in the Company’s financial statements are measured using the currency of the primary economic environment in which it
operates (the “functional currency”). These financial statements are presented in Hong Kong dollar, which is the Company’s functional and
presentation currency.
(ii) Transactions, assets and liabilities
Transactions in foreign currencies are translated at the approximate rates ruling on the dates of the transactions. Monetary assets and
liabilities denominated in foreign currencies are translated at the approximate rates ruling at the end of reporting period. Exchange gains
or losses are recognised in profit or loss.
(k) Related parties
Two parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant
influence over the other party in making financial and operating decisions. Parties are also considered to be related if they are subject to
common control or common significant influence.
(l) Revenue recognition
Revenue is recognised when it is possible that the economic benefits will flow to the Company and when the revenue can be measured
reliably on the following bases:-
(i) Interest income is recognised on a time proportion basis.
(ii) Fees, commission and charges on letter of credit are recognised when the services are rendered.
4. Revenue, other income and net gains or (losses)
Revenue represents interest income on bills financed; fees, commission and charges on letter of credit.
Revenues recognised during the year are as follows:-
2016 2015
HK$ HK$
Revenue
Interest income on bills financed 11,705,250 7,758,334
Fees, commission and charges on letter of credit 7,061,290 6,495,481
18,766,540 14,253,815
Other income and net gains or (losses)
Net exchange gain 216,791 115,044
Total revenues 18,983,331 14,368,859

2016 2015
HK$ HK$
5. Operating Profit
Operating profit is stated after charging:-
Auditor’s remuneration 57,200 56,000
Depreciation 73,011 63,898
Operating lease charges 491,030 476,400
Retirement benefit costs 63,412 27,611
Salaries and allowances 2,368,374 2,044,904
6. Taxation
(a) Hong Kong Profits Tax is calculated at 16.5% (2015: 16.5%) of the estimated assessable profits for the year.
(b) No provision for deferred taxation has been made in the financial statements as there are no material deductible and taxable temporary
differences needed to be accounted for in the year.
7. Directors’ Emoluments
During the years ended 31 December 2016 and 2015, no amounts have been paid in respect of directors’ emoluments, directors’ or past
directors’ pensions or for any compensation to directors or past directors in respect of loss of office.
No significant transactions, arrangements and contracts in relation to the Company’s business to which the Company, or a specified
undertaking of the Company, any one of its holding companies, its subsidiaries or fellow subsidiaries was a party and in which a director of
the Company had a material interest, whether directly or indirectly subsisted the end of the year or at any time during the year.
8. Dividends
2016 2015
HK$ HK$
Final dividend for 2015 declared and paid of HK$Nil (2014: HK$0.46) per share - 643,591
Interim dividend for 2016 declared and paid of HK$2.16 (2015: HK$1.32) per share 3,046,521 1,856,409
3,046,521 2,500,000
9. Property, plant and equipment
Machineries Furniture and

fixtures Total
and equipments
HK$ HK$ HK$
COST
At 1 January 2015 79,769 195,139 274,908
Additions 30,916 2,120 33,036
At 31 December 2015 110,685 197,259 307,944
Additions 65 45,500 45,565
At 31 December 2016 110,750 242,759 353,509
ACCUMULATED DEPRECIATION
At 1 January 2015 37,378 110,079 147,457
Provided for the year 24,446 39,452 63,898
At 31 December 2015 61,824 149,531 211,355
Provided for the year 24,459 48,552 73,011
At 31 December 2016 86,283 198,083 284,366
CARRYING AMOUNTS
At 31 December 2016 24,467 44,676 69,143
At 31 December 2015 48,861 47,728 96,589
10. Bills financed
The following is the aging analysis of bills financed at the end of the reporting period:-
2016 2015
HK$ HK$
0-3 months 282,765,571 220,509,120
4-6 months 77,034,153 27,319,424
7-9 months 17,296,944 219,598
10-12 months - 2,469,538
Over 12 months -
377,096,668 250,517,680
11. Amounts due to holding company

The amounts are unsecured, interest-free and with no fixed terms of repayment.
12. Loan from holding company

The amounts are unsecured, interest bearing and repayable within one year.
13. Related party transactions

During the year, the Company had the following transaction with a related party in the normal course of business:-
2016 2015
Type of transaction Related party Relationship Connected directors
HK$ HK$
Interest expense Eastern Bank Limited Holding company and director Iftekhar Ali Reza Md 7,421,079 5,160,295
14. Commitments under operating lease at 31 december 2016

Total future minimum lease payments under non-cancellable operating leases are payable as follows:
Land and building

2016 2015
HK$ HK$
Within 1 year 498,000 202,980
After 1 year but within 5 years 211,650 -
Over 5 years - -
709,650 202,980
15. Financial risk management

The Company is exposed to various kinds of risks in its operation and financial instruments. The Company’s risk management objectives
and policies mainly focus on minimising the potential adverse effects of these risks on the Company by closely monitoring the individual
exposure as follows:-
(a) Market risk
(i) Currency risk
(1) The Company receives its interest income and service fee, mainly in US dollar, that exposes itself to foreign currency risk arising
from such transactions and the resulting payables and receivables. The Company closely and continuously monitors the exposure as
follows:-
HK dollar is pegged to US dollar, there is no significant exposure expected on US dollar transactions and balances.
(2) Sensitivity analysis
As the net exposure of the Company to foreign currency is relatively small, change in foreign currency exchange rate will have no
material impact on the financial performance of the Company.
(ii) Interest rate risk
The Company’s exposure on interest rate risk is mainly on its interest bearing borrowings. In order to manage the interest rate risk, the
Company will repay the corresponding borrowing when it has surplus fund.
(iii) Price risk
There is no significant price risk as the Company does not have any investment that are traded in an active market.
(b) Credit risk
The major exposure to credit risk of the Company’s financial assets, which comprise bills financed, interest receivables, deposits and
prepayments and cash and bank balances, arises from the default of the counterparties, with a maximum exposure equal to the carrying
amount of these financial assets in the statement of financial position.
(c) Liquidity risk
The Company manages its funds conservatively. The shareholders of the Company would finance sufficient funds to meet continuous
operation need.
The maturity profile of all financial liabilities of the Company as at the end of the reporting period, based on the contracted undiscounted
payments, was as follows:-
2016 2015
Due and payable HK$ HK$
0-3 months 336,228,529 96,908,070
4-6 months 39,973,988 155,234,954
7-9 months - -
10-12 months - -
Over 12 months - -
Total current liabilities 376,202,517 252,143,024
(d) Fair value
The Company’s financial instruments are carried at amounts not materially different from their fair values as at 31 December 2016.
16. Immediate and ultimate holding company

The directors regard Eastern Bank Limited, a company incorporated in Bangladesh, as being the immediate and ultimate holding company.

Auditor’s Report
to the shareholders of EBL Asset Management Limited
We have audited the accompanying Financial Statements of EBL Asset Management Ltd. which comprise the Statement of Financial Position as
at 31st December, 2016 and the Statement of Comprehensive Income, Statement of Changes in Equity and Statement of Cash Flows for the year
then ended, and a summary of significant accounting policies and other explanatory information.
Reporting Standards (BFRS), the Company Act, 1994 and other applicable laws and regulations, and for such internal control as management
Opinion:
In our opinion, the financial statements present fairly in all material respect, the financial position of EBL Asset Management Ltd. as at 31
December 2016 and of its financial performance and its cash flows for the year then ended in accordance with Bangladesh Financial Reporting
Standards (BFRSs) and comply with the Company Act , 1994 and other applicable rules and regulations.
those books; and
iii. the statement of financial position and statement of comprehensive income dealt with by the report are in agreement with the books of
account and returns.


2016 2015
Particulars Note
Taka Taka
PROPERTY AND ASSETS
Current Assets:
Advance tax (withholding tax) 3 113,381 332,036
Cash & Bank Balance 4 52,911,590 52,961,028
Non-Current Assets - -
TOTAL ASSETS 53,024,971 53,293,064
EQUITY AND LIABILITIES
Shareholders' Equity
Paid up capital 5 50,000,000 50,000,000
Retained earnings 6 2,498,413 1,890,061
Total Shareholders' Equity 52,498,413 51,890,061
Current Liabilities:
Accounts Payable 7 198,984 385,278
Provision for tax 8 327,574 1,017,725
526,558 1,403,003
Non-Current Liabilities - -
TOTAL EQUITY AND LIABILITIES 53,024,971 53,293,064
Signed in terms of our annexed report of same date.
Khan Wahab Shafique Rahman & Co.

Dhaka, 23 January 2017 Chartered Accountants
EBL Asset Manangement Limited

2016 2015
Particulars Notes
Taka Taka
Operating Income
Interest income 9 1,133,810 1,915,661
Total operating income 1,133,810 1,915,661
Operating Expense
Legal & Professional Expenses 10 151,734 66,598
Financial Expenses 11 16,150 16,150
Audit Fees 12 30,000 17,250
Total operating expense 197,884 99,998
Profit before Tax 935,926 1,815,663
Provision for tax made for the period 13 327,574 635,482
Net Profit after tax 608,352 1,180,181
Earnings per share 14 1.22 2.36
Signed in terms of our annexed report of same date.


Retained
Particulars Share capital Total
earnings
Net profit during the year - 608,352 608,352
- - -
Balance as at 31 December 2016 50,000,000 2,498,413 52,498,413

Retained
Share capital Total
earnings
Balance as on 01 January 2015 50,000,000 709,880 50,709,880

Net profit during the year - 1,180,181 1,180,181
Balance as at 31 December 2015 50,000,000 1,890,061 51,890,061

EBL Asset Manangement Limited

2016 2015
Particulars
Taka Taka
A. Cash flows from operating activities

Interest income 1,133,810 1,915,661
Paid for operating expenses (384,178) (16,150)
Withholding tax (113,381) (191,566)
Income tax paid (685,689) -
Net cash used in /received from operating activities (49,438) 1,707,945
B. Cash flows from investing activities - -
C. Cash flows from financing activities

Issued Share Capital - -
Net cash received from financing activities - -
D. Net increase/(decrease) in Cash and Bank Balance (A+B+C) (49,438) 1,707,945

E. Opening cash and Bank Balance 52,961,028 51,253,083
F. Closing cash and Bank Balance 52,911,590 52,961,028
Closing Cash and Bank Balance represents

Cash in hand - -
Balances with other banks and financial institutions 52,911,590 52,961,028
52,911,590 52,961,028


1 Reporting Entity:
1.1 Legal status of the Company
EBL Asset Management Limited (here-in-after referred to as ‘EBL AML’ or “the Company”) was incorporated in Bangladesh with the
Registrar of Joint Stock Companies (RJSC) vide registration no. C - 89481/11 dated 09th January 2011 as a Private Limited Company,
limited by shares under the Companies Act, 1994 and is under process to get license from Bangladesh Securities Exchange Commission
(BSEC) for full fledged asset management operation. It is a subsidiary company of Eastern Bank Limited. EBL holds all the shares of the
company except 1 share which is held by one individual. The registered office of the company is situated in Bangladesh.
1.2 Nature of business activities:
The main objectives of the company is to carry out the business of Asset Management, Portfolio Management, Fund Management, Capital
Market Operation, Other Financial Services including Corporate Advisory Services, Merger & Acquisition, Equity Investment, Corporate
Restructuring, Financial & Socio - Economic Consultancy, Corporate Research & Project Studies, Privatization and other related services
in Bangladesh and overseas.
2. Basis of preparation and significant accounting policies:
The financial statements of the Company as at and for the year ended 31 December 2016 have been prepared in accordance with the
Companies Act, 1994, the Securities and Exchange Rules, 1987, the listing rules of Dhaka Stock Exchange, Guidelines from Bangladesh
Bank, Bangladesh Accounting Standards (BAS), Bangladesh Financial Reporting Standards (BFRS), Companies Act 1994 and other laws
and rules applicable in Bangladesh.
2.2 Basis of measurement
The financial statements are prepared on the historical cost basis.
2.3 Basis of accounting
2.4 Use of estimates and judgments (Provisions)
The preparation of the financial statements requires management to use judgments, estimates and assumptions that affect the application
of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in
which the estimate is revised and in any future periods affected.
The financial statements of the Company covers a period from 1 January 2016 to 31 December 2016.
2.6 Cash and Bank Balance and Statement of Cash Flows
Considering the provision of BAS-7, cash in hand and bank deposits, which were held and available for use of the Company without any
restriction have been stated as cash and cash equivalent.
The net cash flow from operating activities is determined for the period under direct method as per Bangladesh Accounting Standard (BAS)
7 ‘Statement fo Cash Flows’. The statement shows the structure of changes in cash and cash equivalents during the year.
2.7 Revenue Recognition
As per BAS-18, ‘Revenue’ is recognised when it is probable that the economic benefits associated with the transaction will flow to the
Company and the amount of revenue and the cost incurred or to be incurred in respect of the transaction can be measured reliably.
2.7.1 Interest income is accounted for on accrual basis.
2.8 Income and expenditures
Income and expenditures are recognised on accrual basis. Income is only recognised if its realisation is reasonably certain.
2.9 Provision for Tax:
Provision for income tax has been calculated @ 35% on Profit Before Tax (PBT).
2.10 General
i) The financial statements are presented in BDT which is the Company’s functional currency. All financial information presented in BDT
has been rounded off to the nearest integar.
ii) Previous year’s figure have been rearranged to conform the current year’s presentation, where necessary.
292 Annual Report 2016 Eastern Bank Ltd. SUPPLEMENTARY INFORMATION
ANNUAL REPORT DISCLOSURE CHECKLIST

The following Disclosure Checklist will help the reader to identify the key sections of the Annual Report 2016
Particulars Page
Corporate Objectives, Values & Structure
z Vision and Mission 9
z Overall strategic objectives 11
z Core values and code of conduct/ethical principles 10, 29
z Profile of the Company 12-13, 32-40
z Directors profiles and their representation on Board of other companies & Organization Chart 15-23, 249-251, 14
Management Report/ Commentary and analysis including Directors Report / Chairman’s Review/CEO’s
Review etc.
z A general review of the performance of the company 42-47, 146-179
z Description of the performance of the various activities / products / segments of the company and its
48-52, 54-64, 39-40, 146-165
group companies during the period under review
z A brief summary of the Business and other Risks facing the organization and steps taken to effectively 72-73, 98-116, 119-130,
manage such risks 36-37
z A general review of the future prospects/outlook 48-49, 150, 154, 157, 160,
163-165, 169, 172, 175
z Information on how the company contributed to its responsibilities towards the staff (including health &
173-177
safety)
z Information on company's contribution to the national exchequer & to the economy 52, 142, 62
Sustainability Reporting 132-141
z Social Responsibility Initiatives ( CSR) 142-143
z Environment related Initiatives 137-138
z Environmental & Social Obligations 139-141
z Integrated Reporting 7, 298
Appropriateness of Disclosure of Accounting policies and General Disclosure
z Disclosure of adequate and properly worded accounting policies relevant to assets, liabilities, Income and
expenditure in line with best reporting standards
z Any Specific accounting policies
196-212
z Impairment of Assets
z Changes in accounting policies/estimates
z Accounting Policy on Subsidiaries
Segment Information
z Comprehensive segment related information bifurcating segment revenue, segment results and segment
253-254, 148
capital employed
z Availability of information regarding different segments and units of the entity as well as non-segmental
148-165, 167-175, 115-117
entities/units
z Segment analysis: Segment Revenue, Segment Results, Operating profit, Carrying amount of Net Segment
253-254
assets
Financial Statements
z Disclosures of all contingencies and commitments 185, 191, 237
z Comprehensive related party disclosures 249-252
z Disclosures of Remuneration & Facilities provided to Directors & CEO 80, 242
z Statement of Financial Position / Balance Sheet and relevant schedules
z Income Statement / Profit and Loss Account and relevant schedules
z Statement of Changes in Equity / Reserves & Surplus Schedule
z Disclosure of Types of Share Capital
184-291
z Statement of Cash Flow
z Consolidated Financial Statement (CFS)
z Extent of compliance with the core IAS/IFRS or equivalent National Standards
z Disclosures / Contents of Notes to Accounts
Information about Corporate Governance
z Board of Directors, Chairman and CEO 12-13, 15-23, 74-80
z Audit Committee (Composition, role, meetings, attendance, etc.), Internal Control & Risk Management 67-71, 51, 79-80, 85-86
z Ethics and Compliance 29, 81-82, 86-97
Particulars Page
z Remuneration and other Committees of Board 79-80
z Human Capital 82, 173-176
z Communication to Shareholders & Stakeholders 82
- Information available on website www.ebl.com.bd
- Other information 64, 82-86
z Management Review and Responsibility 82-85, 146-179
z Disclosure by Board of Directors or Audit Committee on evaluation of quarterly reports 70-71, 50-51
z Any other investor friendly information 64, 115-118
Risk Management & Control Environment
z Description of the Risk Management Framework
z Risk Mitigation Methodology 72-73, 98-114, 119-130
z Disclosure of Risk Reporting
Stakeholders Information
z Distribution of shareholding (Number of shares as well as category wise, e.g. Promoter group, FII etc.)
76-77
z Shares held by Directors/Executives and relatives of Directors/Executives
z Redressal of investors complaints 82
Graphical/ Pictorial Data
z Earnings per Share
z Net Assets
z Stock Performance 57-59
z Shareholders’ Funds
z Return on Shareholders Fund
Horizontal/Vertical Analysis including following
Operating Performance (Income Statement)
z Total Revenue
z Operating profit
z Profit before Tax 61
z Profit after Tax
z EPS
Statement of Financial Position (Balance Sheet)
z Shareholders Fund
z Property, Plant & Equipment
60
z Net Current Assets
z Long Term Liabilities/Current Liabilities
Profitability/Dividends/ Performance and Liquidity Ratios
z Net Interest Income Ratio
z Profit before Provision and Tax
z Price earning ratio (Times)
54-55, 57-59
z Capital Adequacy Ratio
z Return on Capital Employed / Return on Equity
z Debt Equity Ratio / Total liabilities to shareholders’ equity
Statement of Value Added and its Distribution
z Government as taxes
z Shareholders as dividend
z Employees as bonus/remuneration
62-63
z Retained by the entity
z Market share information of the Company’s product/services
z Economic value added
Additional Disclosures
For Example
176, 297
n Human Resource Accounting
n Any other good additional disclosures (Independence certification E.g. GNV/GRI)
Specific Areas for Banking Sector

Disclosure of Ratings given by various rating agencies for instruments issued by/of Bank e.g. FD, CD, Tier I
227
perpetual Bonds
Details of advances portfolio classification as per the direction issued by the central bank of the respective 111-113, 121-124,
countries 218-223, 231-232
Particulars Page
Disclosure for Non Performing assets
z Movements in NPA
z Sector-wise breakup of NPA 221-223, 231-232
z Movement of Provisions made against NPA
n Details of accounts restructured as per regulatory guidelines
Maturity Pattern of Key Assets and Liabilities (ALM) 189, 195, 216-218, 228, 230
Classification and valuation of investments as per regulatory guidelines/Accounting Standards 201, 216-218
Business Ratio/Information
z Statutory Liquidity Reserve (Ratio) 213-214
z Net interest income as a percentage of working funds / Operating cost - Efficiency ratio
z Return on Average Asset
z Cost / Income ratio
z Net Asset Value Per Share
z Profit per employee
54-55, 213
z Capital Adequacy ratio
z Cost of Funds
z Cash Reserve Ratio / Liquid Asset ratio
z Dividend Cover ratio
z Gross Non-Performing assets to gross advances/Non-Performing Loans (Assets) to Total Loans (Assets)
Details of credit concentration / Sector wise exposures 123, 111, 219-220
The break-up of ‘Provisions and contingencies’ included in the Profit and Loss Account 201-202, 231
Disclosure under regulatory guidelines 86-97, 119-130, 235
Details of Non-Statutory investment portfolio 216-218
Disclosure in respect of assets given on operating & finance lease No such assets
Disclosures for derivative investments No such instruments
Bank's Network: List of Centers or Branches 299-304
CORPORATE GOVERNANCE
DISCLOSURE CHECKLIST
Particulars Page
1. Board of Directors, Chairman and CEO

1.1 Company's policy on appointment of directors 75
1.2 Adequate representation of non executive directors i.e. one third of the board (minimum two) 75
1.3 At least one independent director on the board and disclosure/ affirmation of the board on such director’s
75
independence
1.4 Chairman to be independent of CEO 77
1.5 Responsibilities of the Chairman of the Board appropriately defined. Disclosure of independence of Non
77-78
Executive Directors
1.6 Existence of a scheme for annual appraisal of the board performance 78
1.7 Policy on annual evaluation of the CEO by the Board 78
1.8 Policy on training (including details of the continuing training program) of directors and type and nature of
training courses organized for directors during the year. 78
1.9 At least one director having thorough knowledge and expertise in finance and accounting to provide
guidance in the matters applicable to accounting and auditing standards to ensure reliable financial reporting 78
1.10 Number of meetings of the board and participation of each director (at least 4 meetings are required to be
held) 75-76
1.11 Directors issue a report on compliance with best practices on Corporate Governance that is reviewed by the
external auditors 78-79, 86-97
2. Vision / Mission and Strategy

2.1 Company’s vision / mission statements are approved by the board and disclosed in the annual report 9, 79
2.2 Identification of business objectives and areas of business focus 32-33, 149-165
2.3 General description of strategies to achieve the company's business objectives 11, 32-33, 36-38
3 Audit Committee
3.1 Appointment and Composition
3.1.1 Whether the Audit Committee Chairman is an independent Non – Executive Director and professionally
qualified 69
3.1.2 Whether it has specific terms of reference and whether it is empowered to investigate / question employees
and retain external counsel 69-70
3.1.3 More than two thirds of the members are to be Non Executive Directors 75
3.1.4 All members of the audit committee to be suitably qualified and at least one member to have expert
knowledge of finance and accounting 69
3.1.5 Head of internal audit/Head of ICC to have direct access to audit committee 70
3.1.6 The committee to meet at least four times a year and the number of meetings and attendance by individual
members disclosed in the annual report 70
3.2 Objectives & Activities

3.2.1 Statement on Audit Committee’s review to ensure that internal controls are well conceived, properly
69-70, 51
administered and satisfactorily monitored
3.2.2 Statement to indicate audit committees role in ensuring compliance with laws, regulations and timely
70
settlements of statutory dues
3.2.3 Statement of Audit committee involvement in the review of the external audit function
z Ensure effective coordination of external audit function
z Ensure independence of external auditors
z To review the external auditors findings in order to be satisfied that appropriate action is being taken 70
z Review and approve any non audit work assigned to the external auditor and ensure that such work does
not compromise the independence of the external auditors
z Recommend external auditor for appointment/ reappointment
Particulars Page
3.2.4 Statement on Audit committee involvement in selection of appropriate accounting policies that are in line will
applicable accounting standards and annual review 69-71, 51
3.2.5 Statement of Audit Committee involvement in the review and recommend to the board of directors, annual
and interim financial releases 70
3.2.6 Reliability of the management information used for such computation 70
4. Internal Control & Risk Management
4.1 Statement of Directors’ responsibility to establish appropriate system of internal control 67-68, 80
4.2 Narrative description of key features of the internal control system and the manner in which the system is
monitored by the Board, Audit Committee or Senior Management 67-68, 69, 51, 80
4.3 Statement that the Directors have reviewed the adequacy of the system of internal controls 67-68, 51
4.4 Disclosure of the identification of risks the company is exposed to both internally & externally 67, 81, 88
4.5 Disclosure of the strategies adopted to manage and mitigate the risks 98-114, 119-130
5. Ethics and Compliance
5.1 Disclosure of statement of ethics and values, covering basic principles such as integrity, conflict of interest,
compliance with laws and regulations etc. 10, 29, 81
5.2 Dissemination / communication of the statement of ethics & business practices to all directors and employees
and their acknowledgment of the same 82
5.3 Board’s statement on its commitment to establishing high level of ethics and compliance within the
81
organization
5.4 Establishing effective anti-fraud programs and controls, including effective protection of whistle blowers,
establishing a hot line reporting of irregularities etc. 81
6. Remuneration Committee
6.1 Disclosure of the charter (role and responsibilities) of the committee
6.2 Disclosure of the composition of the committee (majority of the committee should be non-executive
directors, but should also include some executive directors)
80, 88
6.3 Disclosure of key policies with regard to remuneration of directors, senior management and employees
6.4 Disclosure of number of meetings and work performed
6.5 Disclosure of Remuneration of directors, chairman, chief executive and senior executives 80, 242
7. Human Capital
7.1 General description of the policies and practices codified and adopted by the company with respect to
Human Resource Development and Management, including succession planning, merit based recruitment,
performance appraisal system, promotion and reward and motivation, training and development, grievance 82, 88, 173-176
management and counseling
7.2 Organizational Chart 14
8. Communication to Shareholders & Stakeholders
8.1 Company's policy/strategy to facilitate effective communication with shareholders and other stakeholders 82
8.2 Company’s policy on ensuring participation of shareholders in the Annual General Meeting and providing
reasonable opportunity for the shareholder participation in the AGM 82
9. Environmental and Social Obligations
9.1 General description of the company's policies and practices relating to social and environmental 82, 132-141,
responsibility of the entity 137-141
9.2 Specific activities undertaken by the entity in pursuance of these policies and practices 82, 132-141,
137-141
SUMMARY OF GRI G4 CONTENT INDEX

Particulars Page Reference
General Standard Disclosures
Strategy and Analysis 42-44, 46-47, 132
Organizational Profile 12-13, 39-40
Identified Material Aspects and Boundaries 38, 136
Stakeholder Engagement 35
Report Profile 133
Governance 133, 74-97
Ethics and Integrity 29, 173
Specific Standard Disclosures
Economic 62-63, 138-139
Environmental 137-138
Social 139-141
Sub Category: Labour Practices and Decent Work 174
Sub Category : Human Rights 175
Sub Category: Society 52, 140, 142-143
Sub Category: Product Responsibility 140, 170-172
INTEGRATED REPORTING CHECKLIST

SL
Particulars Page Reference Chapter/Section Reference
No.
1 Elements of an Integrated Report
Organizational overview and external
1.1 9-31, 32-40 Organizational overview, Business Model
environment
Corporate Governance Report, Code of conduct and
1.2 Governance 29, 74-97
ethical guidelines,
Stakeholder Engagement, Stakeholders’ Information,
1.3 Stakeholder Identification/ relationships 35, 64, 166 Human Capital, Capital Planning and Management,
Business Model and value creation
32-34, 39-40, 149-165, Business Model and value creation, Our Products and
1.4 Business model
36-37 Services, Business Review, External Environment
Financial Highlights, Directors' Report, Horizontal
54-55, 48-52, 60-61, 146- and Vertical Analysis, Financial Review, Business
1.5 Performance 148, 149-165, 132-141, Review, Sustainability Report, NPL Management,
115-116, 176, 35 Human Resources Accounting, Stakeholder
Engagement
Risk Management, External Environment, Business
1.6 Risks, opportunities and internal controls 98, 114, 36-37, 149-165
Review, Corporate Governance
Value Creation for the Stakeholders, Strategic Priority,
Business Model, External Environment, Directors'
34, 32-33, 36-37, 48-52,
1.7 Strategy and resource allocation Report, Value Added Statement, EVA, Business Model
62, 63, 46-47, 35
and value creation, Review of the Managing Director
and CEO, Stakeholder Engagement
Business review, External environment, Capital
149-165, 36-37, 166,
Planning and Management, Chairman's Statement,
1.8 Outlook 42-44, 46-47, 48-52,
Review of the Managing Director, Directors' Report,
98-114
Risk Management
1.9 Basis of preparation and presentation 07 Scope and Boundary of Integrated Annual Report
2 Responsibility for an integrated report 07 Scope and Boundary of Integrated Annual Report
Other Qualitative Characteristics of an
3
Integrated Report
Conciseness- An integrated report should be
3.1 07 Complied
concise
Reliability and completeness-An integrated report
should include all material matters, both positive
3.2 07 Complied
and negative, in a balanced way and without
material error
Consistency and comparability-The information
in an integrated report should be presented:
On a basis that is consistent over time
3.3 07 Complied
In a way that enables comparison with other
organizations to the extent it is material to the
organization’s own ability to create value over time.
Connectivity of information-An integrated report
should show a holistic picture of the combination,
3.4 interrelatedness and dependencies between the 07 Complied
factors that affect the organization’s ability to create
value over time.
Materiality-An integrated report should disclose

information about matters that substantively affect
3.5 07, 38 Complied
the organization’s ability to create value over the
short, medium and long term
3.6 Assurance on the Report 07 Scope and Boundary of Integrated Annual Report
BRANCH NETWORK
Dhaka Chawk Mughultuly Branch Dohar Branch
Principal Branch 150 Chawk Mughultuly (1st Floor), Dhaka Ashraf Ali Chowdhury Plaza,
Jiban Bima Bhaban, 10 Dilkusha C/A, Dhaka 1000 Tel: 02 7314364, 7314369 83, College Road, Joypara,
Tel: 02 9558392, 9565696, 9571262 Email: chawkmughultuly@ebl-bd.com Dohar, Dhaka
Fax: 02 7160747. Email: principal@ebl-bd.com Narayangonj Branch Tel: 06223-56211, 06223-56209, 06223-56208
64 BB Road (Islam Plaza), Narayangonj Email: dohar@ebl-bd.com
Motijheel Branch
88 Motijheel C/A, Dhaka Tel: 02 7648557-58 Faridpur Branch
Tel: 02 9559655, 9565073-4. Fax: 02 9565074 Email: narayangonj@ebl-bd.com Golpukur Dream Shopping Complex
Email: motijheel@ebl-bd.com Keraniganj Branch 7/216, Mujib Road, Faridpur
Jahanara Plaza, Bondh Dakpara, Zinzira, Tel: 0631-67218, 0631-67219, 0631-67220
Gulshan Branch
Keraniganj, Dhaka Email: faridpur@ebl-bd.com
Concord Richmond, 68 Gulshan Avenue, Plot 8A Block
CES (F) Gulshan 1, Dhaka Tel: 02 7762236-7 Progoti Sarani Branch
Tel: 02 9897703, 9897594, 8827254, 8827101-2 Email: keraniganj@ebl-bd.com Azahar Comfort Complex, 130/A, Progoti Sarani,
Fax: 02 9897703. Email: gulshan@ebl-bd.com Board Bazar Branch Middle Badda, Gulshan, Dhaka
Omar Ali Plaza, House 1, Block C, Board Bazar, Gazipur Tel: 8826796, 8825357, 8824963
Gulshan North Branch
Tel: 02 9293895-6 Email: progotisarani@ebl-bd.com
Kalpana House, 169, Gulshan Avenue, Gulshan-2, Dhaka
Tel: 9896073, 9896038, 9896316, 9896316 Email: boardbazar@ebl-bd.com Azimpur Branch
Fax: 02 9896316 Savar Branch Tulip Feroza Dream, 104, Azimpur Road,
E/3, Tala Bagh, Thana Road, Savar, Dhaka Hazaribagh, Dhaka
Bashundhara Branch
Tel: 02 7744757-8 Fax: 02 7744759 Tel: 9660483, 9612004, 9612005
Plot-15, Block-A, Bashundhara R/A,
Email: azimpur@ebl-bd.com
Badda, Dhaka-1219 Satmosjid Road Branch
Tel: 8845391, 8845392, Fax: 8845390 48, Satmosjid Road (Ground floor of OLYMPIA Chinese Madhabdi SME/Agri Branch
Email: bashundhara@ebl-bd.com Restaurant) Dhanmondi, 242/1, Algi Road, Madhabdi Bazar,
Tel: 02 9144603 Fax: 02 9144604 Parkashipur, Madhabdi, Narshindi
Banani Branch
Tel: 9446995, 9446978, 9446993
“Skylark Mark84” House # 84, Road # 11, Block-D, Banasree Branch Email: narshindi@ebl-bd.com
Banani, Dhaka, Banani Model Town, Plot No C-10 (1st Floor & ATM at GF),
Gulshan, Dhaka - 1213 Block-C, Eastern Housing Banasree Project, DEPZ Branch
Tel: Phone: 9862669, 9862572,9860476 Fax: 9862903 Banasree Rampura, Dhaka. Mazid Tower, Baipail, Dhamshona, Ashulia, Dhaka
Email: banani@ebl-bd.com Tel: 02 7287991, 7286266 Tel: 02 7790926, Fax: 02 7790927
Email: depz@ebl-bd.com
Uttara Branch Uttara Garib-E-Newaz Branch
Plot 1A, Road 4, Sector 4, Uttara Model Town, Dhaka Plot No-15 (1st floor), Garib-E-Newaz Avenue, Sector-11, Ashkona Branch
Tel: 02 8915136, 8919051, 8950470, 7911128 Uttara, Dhaka-1230 Hazi Komoruddin Tower 27, Ashkona,
Fax: 02 8918859 Email: uttara@ebl-bd.com Tel: 02 8915457, 8915447 Dakshinkhan
Email: garibenewaz@ebl-bd.com Uttara, Dhaka-1230
Mirpur Branch
Tel: 880-2-7914609, 7914619
House # 17, Main Road # 3, Block-A, Section-11, Nawabgonj Branch Email: ashkona@ebl-bd.com
Mirpur, Dhaka-1216 Hossain Plaza, Kolakopa Union Parishad,
Tel: 02 -9008115, 9010478 281 Nawabgonj, Dhaka-1320 Wari Branch
Email: mirpur@ebl-bd.com Tel: 0622556264, 0622556266, 0622556265 40/1 Rankin Street, Wari, Dhaka
Email: nawabgonj@ebl-bd.com Tel: 02 7112175, 02 7110137, Fax: 02 7110949
Shyamoli Branch
Email: wari@ebl-bd.com
Plot 16-A/5, Ring Road, Block F, Keraniganj SME/Agri Branch
Mohammadpur Housing Estate, Dhaka 1207 ‘Green Tower’, Aganagar Union Parishad, Jashimuddin Road Branch
Tel: 02 8116015, 9132497, 9133165 South Keraniganj, Dhaka Giant Business Tower, Level 2, Plot 3 & 3/A, Sector 3,
Email: shamoly@ebl-bd.com Tel: 02 7763725, 7763726,7763727 Uttara, Dhaka
Email: keranigonjsme@ebl-bd.com Tel: 028961486, 028961481, 028961472
Dhanmondi Branch
Email: jashimuddin@ebl-bd.com
House 21, Road 8, Dhanmondi R/A, Dhaka-1205 Mirpur Dar-Us-salam Road Branch
Tel: 02 9126141, 9114145, 9146235 Chand plaza, 10 Dar-Us- Salam Road, Mirpur-01, Dhaka-1216 Ponchoboti Branch
Email: dhanmondi@ebl-bd.com Tel: 02 9003465 Fax: 02 9003449 101 & 102 ponchobotir more (1st floor), Fatullah,
Email: darussalam@ebl-bd.com Narayangonj
Sonargaon Road Branch
Tel: +88-02-7672837, 7672853,
‘A H N Tower (1st Floor), 13 & 15 Bir Uttam C R Datta Road Narayanganj SME/Agri Branch
(Sonargaon Road), Banglamotor, Dhaka S S Tower, 30/14 Loyal Tank Road, Sonargaon Narayanganj Branch
Tel: 02 8613225, 8619866 Tanbazar, Narayanganj Bhuiyan Plaza, Mograpara, Sonargaon
Email: sonargaonroad@ebl-bd.com Tel: 7644048, 7644480 Fax +8802-7644077 Narayanganj
Email: narayanganjsme@ebl-bd.com Tel: 7656031, 7656036, 7656064
Shantinagar Branch
Iris Noorjehan (1st Floor) Plot no. 104, Kakrail Road Tangail Branch Khilgaon Branch
Ramna, Dhaka “Rahman Center” (1st floor), 574/C, Khilgaon Chowdhury Para, Dhaka-1219
Tel: 02 8300012, 02 8300013, 02 8300028, 02 8300029 55 Victoria Road, Tangail Tel: 02-55121933, 02-55121934, Fax: 02-55121935
Fax: 8300053 Tel: 092162437, 092162438, 092162439 Email: khilgaon@ebl-bd.com
Email: shantinagar@ebl-bd.com Email: tangail@ebl-bd.com Mawna Branch
Moghbazar Branch Mymensingh SME/Agri Branch Creative Bhaban, Mawna Chowrasta, Sreepur,
Shafi Complex, 1/A West Moghbazar, New Circular Road, “Hamida Market”, 45 Choto bazaar, Gazipur
Ramna, Dhaka. Tel: 02 9361756, 9360115 Kotwaly, Mymensingh Tel: +8809666777325 Ext: 970 to 976
Fax: 02 9348570 Email: moghbazar@ebl-bd.com Tel: 09163831, 09163861, 09163841 Email: mawna@ebl-bd.com
English Road Branch Email: mymensinghsme@ebl-bd.com Bhulta Branch
68, Shahid Sayed Nazrul Islam Sarani Bhairab SME/Agri Branch Rabet Al Haasan Shopping Center (Pvt) Ltd.,
(1st & 2nd floor), North South Road, Dhaka-1100 House-0161, Kalibari Road, Bhairab Bazar, Bhulta Bus Stand, Rupgonj, Narayangonj
Tel: 02 7125269, 7116019 Kishorgonj, Bhairab Tel: +8809666777325, EXT: 980 to 986
Email: englishroad@ebl-bd.com Tel: 09424 72307, 09424 72308, Fax: 09424 72309 Email: bhulta@ebl-bd.com
Email: bhairabsme@ebl-bd.com
Ashulia Branch Lohagara Chittagong Branch Moulvi Bazar Branch

Ashraf Plaza DEPZ Road Jamgora Ashulia Savar M. K. Shopping Complex (1st Floor), 26, Sylhet Trunk Road (1st Floor),
Dhaka Bottoli, Main Road, Lohagara, Chittagong Moulvi Bazar-3200
Tel: IP No 8809666777325 Ext 1220 1230 Tel: 0303 456681, 0303 456682 Fax: 0303 456682 Tel: 0861 52034 , 0861 52226
Email: ashulia@ebl-bd.com Email: lohagora@ebl-bd.com Email: moulvibazar@ebl-bd.com
Chittagong Hathazari Chittagong Branch Brahmanbaria Branch
Haji Sultan Market, Hathazari Bus Stand, Abil Mia Plaza, 106, T.A. Road, Brahmanbaria
Agrabad Branch/SME Center Hathazari, Chittagong Tel: 01194493940, 01715073206, 01743438386
33 Agrabad C/A, Chittagong Tel: 031-2601956, 031-2601957, Fax: 031-2601958 Email: brahmanbaria@ebl-bd.com
Tel: 031-720755-9 Fax: 031 710262 Email: hathazari@ebl-bd.com
Email: agrabad@ebl-bd.com Fenchuganj Branch
Comilla SME/Agri Branch Tuta Mia Mansion, Fenchuganj Bazar
New Market Branch Chowdhury Plaza, 195, Jail Road, Fenchuganj, Sylhet
904/731, H S S Road (New Market More), Alankar, Jhawtala, Comilla Tel: 08226-56411, 08226-56412, 08226-56413
Kotwali, Chittagong-4000 Tel: 08172778, 08172779, 08172479, 08172679, Email: fenchuganj@ebl-bd.com
Tel: 031-621898, 620519, 636986 08172478
Email: newmarket@ebl-bd.com Email: comilla@ebl-bd.com Khulna
Khatunganj Branch Nazirhat Branch Khulna Branch/SME Center
173 Khatunganj Badsha Market, Zaria Community Centre, (Adjacent to Dorbar Tayamun Centre & Properties
Chittagong Gate) 181, Khan A. Sabur Road, Khulna
Tel: 031 621316, 630229, 635153 Fax: 031 638743 Nazirhat, Fatickchari, Chittagong Tel: 041 723506, 721069, 720041-2, 723418 Fax: 041
Email: khatunganj@ebl-bd.com Tel: 044 3800 0504-5 Ext: 101, 017 1310 7217 721740
O. R. Nizam Road Branch Email: nazirhat@ebl-bd.com Email: khulna@ebl-bd.com
Avenue Centre, 787 CDA Avenue, Chittagong Bhatiari Branch Fulbarigate Branch
Tel: 031-617082, 617083, 2853251, 2857073-5 Sajeda Bhaban(Ground Floor, 1st & 2nd floor)”, Altaf Plaza, Jogipole, Khan Jahan Ali, Khulna
Fax: 031 617083 Email: ornizamroad@ebl-bd.com beside H.Akbar Ali Road, Tel: 041-775080, 775082
Jubilee Road Branch/SME Center Bhatiari,Chittagong Email: fulbarigate@ebl-bd.com
Mannan Bhaban, 156 Nur Ahmed Sarak, Tel: 044 38000567, 044 38000568 Jessore Branch
Jubilee Road, Chittagong Email: bhatiary@ebl-bd.com 25/A R.N. Road (1st Floor), Jessore
Tel: 031 614442, 031 621480, 2858471 Mehdibagh Branch Tel: 0421-68842-3, 0421-64533
Fax: 031 615594. Email: jubileeroad@ebl-bd.com Epic Emdad Heights, 38 Chatteshwari Circle, Email: jessore@ebl-bd.com
Chandgaon Branch Mehdibagh, Chittagong Rajshahi
House-16, Road-01, Block-A, Chandgaon R/A Tel: 031 2869451 - 2, Fax 031 2869453 Rajshahi Branch
Chittagong–4212 Email: mehdibagh@ebl-bd.com Doinik Barta Complex (Ground Floor)
Tel: 031 2571204, 2571205, 2572704 Maijdee Branch Alupotti, Natore Road, Rajshahi-6000
Email: chandgaon@ebl-bd.com Alif Plaza, Main Road, Maijdee, Noakhali Tel: 0721 772372, 772356 Fax 9721 772356
Panchlaish Branch Tel: 0321 71115, 0321 71116, Fax 880 0321 71137 Email: rajshahi@ebl-bd.com
Al-Hakim Plaza Email: maijdee@ebl-bd.com Bogra Branch
14, Panchlaish R/A, Chittagong-4203 Jamal Khan Branch 1020/1092, Satani Mega Centre, Sherpur Road
Tel: 031 2552691, 031-2553556 Fax: 031 2552692 CPDL AM Majesta (1st Floor), Bogra 5800
Email: panchlaish@ebl-bd.com 84, Jamal Khan Road, Chittagong Tel: 051 78373, 78887 , 69932
Raozan Branch Tel : 031-2866603-04 ,Fax-88 031-2866605 Email: bogra@ebl-bd.com
Bharetoshowri Market, Kaptai Road Dohazari Branch Rangpur
Noapara, Raozan, Chittagong-4346 Hazari Tower (1st Floor), Dohazari,
Tel: 031 2571207 Rangpur Branch
Chandanaish, Chittagong House-11, Road-1, Dhap Jail Road, Rangpur
Email: raozan@ebl-bd.com Tel : 09666777325 Tel: 052155289, 052155290, 052155291
Choumuhani Branch Khulshi Branch Email: rangpur@ebl-bd.com
“Kiron Imperial” (GF, 1st and 2nd Floor), 1460 10 Zakir Hossain Road, Khulshi, Chittagong - 4212
Karimpur Road, Tel : 623410,623411-12
Barisal
Choumuhoni , Begumgonj, Noakhali Email: khulshi@ebl-bd.com Barisal Branch
Phone: 0321 56497, 0321 56495, 0321 56496 Bishnu Priya Bhaban, Holding No- 0451-000,
Muradpur Branch
Cox’s Bazar Branch Road-69, Barisal Sadar Road, Barisal
Jumairah Fairmont Trade Centre
10 Hotel Motel Zone, Kolatali Road, Cox’s Bazar 327 Old CDA Avenue
Tel: 0341-51295-7 Email: coxsbazar@ebl-bd.com Muradpur Chittagong 4203 Bangladesh
Feni SME/Agri Branch Tel : 0316539734, Fax: 031653972
“Kazi Alamgir Center”, 26 S.S.K Road, Feni Email: muradpur@ebl-bd.com
Tel: 0331 73562, 0331 73563, 0331 73564
Email: feni@ebl-bd.com Sylhet
Halishahar Branch Upasahar Branch
House-1, Road-1, Block-L, Halishahar Housing 504, Gas Bhaban (GF)
Estate Mehdi Bagh, Sylhet
Halishahar, Chittagong. Tel: 0821 719573, 719584 Fax: 0821 719584
Tel: 031 2513895, 031 2513896-7 Email: upashahar@ebl-bd.com
Email: halishahar@ebl-bd.com Chouhatta Branch
Sirajuddowla Road Branch Firoz Centre,
94 Sirajuddowla Road, Dewan Bazar, Chandanpura, 891/KA, Chouhatta, Sylhet
Chittagong Tel: 0821-717545, 723242, 721386 Fax: 0821 717545
Tel: 031 2865261-4 Email: chouhatta@ebl-bd.com
CEPZ Chittagong Branch Bishwanath Branch

1279/A Saleh Complex, CEPZ Gate, Bandar, Khurshid Ali Shopping Complex
Chittagong Notun Bazar, Bishwanath, Sylhet-3100
Tel: 031 742195, 031 742196, 031 742197 Tel: 08224 56005
Email: cepz@ebl-bd.com Email: bishwanath@ebl-bd.com
CORRESPONDENT BANK NETWORK
ALGERIA Citibank N.A. HELSINKI
ALGIERS Standard Chartered Bank Cameroon S.A. Citibank International PLC
Citibank NA Algeria CANADA Nordea Bank PLC
ARGENTINA TORONTO Svenskahandelsbanken
BUOENS AIRES Bank of Nova Scotia Pohjola Bank PLC
Deutsche Bank SA Citibank NA Skandinaviskaenskildabanken
AUSTRALIA HSBC Bank Canada FRANCE
MELBOURNE ICICI Bank Canada PARIS
Citibank NA Bank of Montreal NA Attijariwafa Bank Europe,
SYDNEY Toronto-Dominion Bank BNP Paribas S.A.
JP Morgan Chase Bank N.A. CHINA The Bank of Tokyo-Mitsubishi Limited
HSBC Bank Australia BEIJING HSBC
The Bank of Tokyo Mitsubishi UFJ Ltd Bank of China Citibank International PLC
Common wealth Bank of Australia Bank of Montreal (China) Co. Ltd Credit Mutuel (Holding BFCM)
Citibank NA Bank of Tokyo-Mitsubishi UFJ (China), Ltd Credit Industriel ET Commercial
AUSTRIA Deutsche Bank AG Banque Federative Du Credit Mutuel
VIENNA Woori Bank (China) Limited Commerzbank AG
Kathrein UND Co Privatgeschaeftsbank JP Morgan Chase Bank NA, Deutsche Bank AG
Aktiengesellschaft China Construction Bank Corporation ING Bank (France) S.A.
The Bank of Tokyo Mitsubishi UFJ Ltd Industrial and Commercial Bank of China Limited, National Bank of Pakistan
Citibank International PLC Commerzbank AG Union De Banques Arabes ET Francaises
Deutsche Bank Aktiengesellschaft Weifang Rural Commercial Bank Co Ltd. Societe Generale
Raiffeisen Landesbank Neideroesterreich-Wien AG Agricultural Bank Of China Limited GERMANY
Raiffeisen Zentralbank Oesterreich AG GUANGZHOU FRANKFURT AM MAIN
Bank Austria Creditanstalt AG, Bank of China Raiffeisen landesbank Oberosterreich
ING Bank NV JP Morgan Chase Bank (China) Akteiengesellschat
BREGENZ Bank of Nova Scotia JP Morgan AG
Raiffeisen Landesbank Vorarlberg SHANGHAI Citigroup Global Markets Deutschland AG
EISENSTADT Bank of Montreal (China) Co. Ltd Commerzbank AG
Raiffeisen Landesbank Burgenland RGMBH Axis Bank Ltd., Deutsche Bank AG
GRAZ Industrial and Commercial Bank of China Limited SEB AG
Raiffeisenlandesbank Steiermark Bank of Tokyo-Mitsubishi UFJ (China), Ltd. ING Bank
INNSBRUCK JP Morgan Chase Bank N.A. Standard Chartered Bank
Raiffeisen-Landesbank Tirol Aktiengesellschaft Citibank, N.A. Bank of Beirut (UK) Ltd.
KLAGENFURT Commerzbank AG MUENCHEN
Raiffeisenlandesbank Kaernten, Reg.Gen.M.B.H. Bank of Chongging, China Deutsche Bank AG
LINZ Deutsche Bank (China) Co. Ltd MAINZ
Raiffeisenlandesbank Oberoesterreich Reg. HSBC Bank (China) Company Limited Deutsche Bank AG
Gen.M.B.H. The Bank of New York Mellon, BERLIN
BAHRAIN Jiangsu Jiangyin Rural Commercial Bank Berliner Volksbank AG
MANAMA Mizuho Corporate Bank (China),Ltd Commerzbank AG
Alubaf Arab International Bank B.S.C. ( C ), Standard Chartered Bank. Deutsche Bank AG
Citibank NA Bahrain Zhejiang Pinghu Rural Cooperative Bank Shanghai, CHEMNITZ
Standard Chartered Bank China Deutsche Bank AG
Arab Investment Company Bank of Communications DRESDEN
The Bank of Tokyo Mitsubishi UFJ LTD JINING Deutsche Bank AG
BMI Bank Bsc (C) Bank of Jining Co Ltd Jining China DUESSELDORF
United Bank Ltd NANHAI Bank of Tokyo-Mitsubishi UFJ, Ltd
ICICI Bank Limited Nanhai Rural Credit Union HSBC
BELGIUM ZHEJIANG DZ Bank AG
BRUSSELS Zhejiang Shaoxing Country Rural Cooperative Bank Deutsche Bank AG
ABN AMRO Bank NV CAYMAN ISLANDS Landesbank Hessen-Thueringen Girozentrale
Citibank International PLC Commerzbank AG HUMBURG
The Bank of Tokyo Mitsubishi UFJ LTD CONGO Commerzbank AG
ING Bank Citibank Congo Deutsche Bank AG
Commerzbank AG, CYPRUS HANNOVER
BNP Paribas S.A. NICOSIA (LEFKOSIA) Deutsche Bank AG
Deutsche Bank AG Bank of Cyprus Ltd. STUTTGART
ICICI Bank UK PLC CZECH REPUBLIC Landesbank Baden-Wuerttemberg
KBC Bank NV PRAGUE GREECE
State Bank of India Ceskoslovenskaobchodni Banka AS ATHENS
CBC Banque Citibank AS Citibank International PLC
Byblos Bank Europe SA Unicredit Bank GHANA
BHUTAN COTE D’IVOIRE Standard Chartered Bank
PHUNTSHOLING Citibank N.A. HONG KONG
Bank of Bhutan Standard Chartered Bank HONG KONG
THIMPU DENMARK Banca Intesa S.P.A.
Bhutan National Bank Ltd. COPENHAGEN Bank of America, N.A.
BRAZIL Danske Bank AS Bank of Tokyo-Mitsubishi UFJ, LTD
BRAZILIA Sydbank AS JP Morgan Chase Bank
Banco Citibank SA Nordea Bank Citibank (Hong Kong) Limited
SAO PAULO Handelsbanken Midtbank Commerzbank AG
Deutsche Bank SA EGYPT Bank One NA
Citibank N.A. CAIRO Svenska Handelsbanken AB
PORTO ALEGRE Citibank Cairo HBZ Finance Limited
Banco Do Estado Do Rio Grande Do SUL S/A Housing and Development Bank Hong Kong and Shanghai Banking Corp Ltd
CAMEROON Mashreq Bank ICICI Bank Limited
DOUALA FINLAND Bank of New York
Mizuho Corporate Bank Ltd. Unicredito Italiano SPA RHB Bank Berhad
Mashreq Bank PSC., Credito Emiliano S.P.A. Reggio Nell Emilla Standard Chartered Bank
Bank of Nova Scotia Banca Delle Marche SPA, The Bank of Tokyo Mitsubishi UFJ LTD
Wells Fargo Bank N.A. Banca Antonveneta SPA Malayan Banking Berhad (May Bank)
Standard Chartered Bank Banca Popolare Di Sondrio Sumitomo Mitsui Banking Corp. Malaysia Berhad
Industrial and Commercial Bank of China (Asia) Limited UBI Banca MALDIVES
Wing Hang Bank Ltd. Deutsche Bank S.P.A. MALI
Axis Bank Ltd Cassa Di Risparmio Di Ravenna S.P.A. Hong Kong and Shanghai Banking
Sumitomo Mitsui Banking Corp. Banca Monte Dei Paschi Di Siena SPA, Corporation Limited
Deutsche Bank AG. Cassa Di Risparmio Di Carrara SPA, MALTA
Westpac Banking Corporation, Credito Valtenllinese SOC COOP. ST. JULIAN’S
Toronto Dominion Hong Kong Banca Passadore Fimbank PLC
Habib Finance Intl. Limited, Cassa Di Risparmio Delta Spezia SPA, MAURITIUS
Unicredit Bank AG, Cassa Di Risparmio Di Parma E Placenza SPA, PORT LOUIS
EBL Finance (HK) Limited PAD OVA Deutsche Bank (Mauritius) Ltd
Commonwealth Bank of Australia, Banca Antonveneta SPA Mauritius Commercial Bank Ltd.
ICICI Bank Limited, Hong Kong PORDENONE MOROCCO
DBS (Hong Kong) Limited Banca Popolare Friuladria SPA CASABLANCA
HUNGARY VERONA Citibank Maghreb
BUDAPEST Banco Populare SOC COOP MONACO
CIB Bank Ltd Banco Popolare Di Verona E Novara SCRL Citibank International PLC
Citibank Europe PLC ROME MYANMAR
Deutsche Bank AG Banca Nazionale Del Lavoro S.P.A. KBZ Bank
INDIA Banca UBAE SPA Co-Operative Bank Limited
MUMBAI JAPAN NEPAL
Axis Bank Ltd. TOKYO KATHMANDU
Bank of America N.A. The Bank of Tokyo Mitsubishi UFJ LTD Nepal Bangladesh Bank Ltd
Citibank NA Chiba Kogyo Bank Ltd. Standard Chartered Bank
Deutsche Bank AG Citibank NA NETHERLANDS
Federal Bank Limited Commerzbank AG AMSTERDAM
Hong Kong and Shanghai Banking Corp. Ltd Hong Kong and Shanghai Banking Corp. Ltd. ING Bank NV
ICICI Bank Limited Mizuho Corporate Bank Ltd. ABN AMRO Bank NV
Mashreq Bank Wells Fargo Bank N.A. Commerzbank AG
Punjab National Bank Standard Chartered Bank Citibank International PLC
Standard Chartered Bank Sumitomo Mitsui Banking Corp. The Bank of Tokyo Mitsubishi UFJ LTD
Syndicate Bank UBAF-Union De Banques Arabes Et Francaises Deutsche Bank A.G.
Tamilnad Mercantile Bank Ltd. The Bank of Nova Scotia BREDA
Union Bank of India JP Morgan Chase Bank ING Bank NV
United Bank of India Deutsche Bank AG, ROTTERDAM
JP Morgan Chase Bank N.A. KENYA ABN AMRO Bank NV
HDFC Bank Limited, NAIROBI UTRECHT
INDUSIND Bank Ltd. Citibank NA Rabo Bank
Yes Bank Ltd., Dubai Bank Kenya Ltd NEW ZEALAND
IDBI Bank Ltd., KOREA AUCKLAND
Sociate Generale India Branch SEOUL Citibank NA
Kotak Mahindra Bank Limited The Bank of Tokyo Mitsubishi UFJ LTD HSBC
DELHI JP Morgan Chase Bank N.A. ASB Bank
Deutsche Bank AG Citibank NA NIGERIA
ICICI Bank Limited Kookmin BANK LAGOS
CALCUTTA Hong Kong & Shanghai Banking Corp. Ltd. Citibank NA
Sonali Bank Woori Bank NORWAY
Standard Chartered Bank Industrial Bank of Korea OSLO
Axis Bank Ltd Bank of New York Swed Bank, Norway
INDONESIA Korea Exchange Bank Nordea Bank Norgeasa
JAKARTA Wells Fargo Bank N.A. Skandinaviska Enskilda Banken
Bank Mandiri (Persero), PT. Standard Chartered Bank Handelsbanken
Bank Central Asia UBAF-Union De Banques Arabes Et Francaises DNB Nor Bank ASA
Citibank NA Deutsche Bank AG, Citibank International PLC
Hong Kong and Shanghai Banking Corp Ltd. PUSAN OMAN
Standard Chartered Bank Pusan Bank MUSCAT
Bank Negara Indonesia-PT KUWAIT HSBC Bank Middle East Ltd
JP Morgan Chase Bank N.A. KUWAIT CITY Bank Muscat
Deutsche Bank A.G., Citibank NA PAKISTAN
Bank Mega PT, Commercial Bank of Kuwait KARACHI
Bank of Tokyo Mitsubishi Ltd. LEBANON Citibank NA
IRELAND BEIRUT NIB Bank Ltd
DUBLIN Citibank NA Beirut Standard Chartered Bank
Citibank N.A. LATVIA Habib Metropolitan Bank Limited
Bank of America, N.A Nordea Bank Finland PLC Latvia Branch Arif Habib Rupali Bank Ltd
Bank of Ireland MACAU United Bank Ltd
ITALY MACAU Deutsche Bank AG
MILAN Hong Kong and Shanghai Banking Corp Bank Alfalah Limited
Banca Intesa SPA MALAYSIA Habib Bank Ltd
Intesa Bci S.P.A. KUALA LAMPUR Bank Al Habib Ltd
Banca Popolare Di Milano S.C.A.R.L. JP Morgan Chase Bank Berhad Meezan Bank Limited
Banca Populare Friuladria SPA ABN AMRO Bank Berhad Bankislami Pakistan Limited
Citibank NA CIMB Bank Berhad PHILLIPINES
Commerzbank AG Citibank NA Kualalumpur, Malysaia MANILA
ING Bank N.V. Deutsche Bank (Malaysia) Berhad Citibank NA
Banca Popolare Di Marostica HSBC Standard Chartered Bank
Deutsche Bank AG State Bank of India Banque Cantonale Vaudoise
The Bank of Tokyo Mitsubishi UFJ LTD ABN AMRO Bank N.V. YVERDON-LES-BAINS
Asian Development Bank Oversea-Chinese Banking Corp.Ltd UBS AG
POLAND United Overseas Bank Limited, BASLE
WARSZAWA Banco Santander SA, ABN AMRO Bank
Raiffeisen Bank Polska S.A. Habib Bank Limited BERNE
PORTUGAL Emirates NBD PJSC, ABN AMRO Bank
LISBON DBS Bank Ltd. LUGANO
Banco Atlantico, S.A. First Gulf Bank ABN AMRO Bank
Banco BPI SA SLOVAKIA PRAGUE
Citibank International PLC BRATISLAVA Deutsche Bank AG
Deutsche Bank AG Citibank Europe PLC TAIWAN
Banif-Banco Internacional SOUTH AFRICA TAIPEI
Banco Espirito Santo SA JOHANNESBERG Bank of America N.A.
QATAR Citibank NA The Bank of Tokyo Mitsubishi UFJ LTD
DOHA Commerzbank AG JP Morgan Chase Bank N.A.
Mashreq Bank First National Bank Citibank NA
HSBC Bank Middle East Limited SPAIN Chinatrust Commercial Bank
United Bank Limited MADRID Far Eastern International Bank
ROMANIA Intesa BCI S.P.A. Hong Kong and Shanghai Banking Corp. Ltd.
BUCHAREST Bank of America N.A. Bank of New York
Citibank Europe PLC The Bank of Tokyo Mitsubishi UFJ LTD Bank of Nova Scotia
RUSSIA Banco De Sabadell S.A. Wells Fargo Bank N.A.
MOSCOW Confederacion Espanola De Cajas De Ahorros Standard Chartered Bank
Banca Intesa Zao Moscow Citibank International PLC Citibank Taiwan Limited
Citibank NA Caja Laboral Popular, Coop. De Credito Deutsche Bank A.G.
Commerzbank Eurasija SAO Afina Gestion Sgiic SA Taichung Commercial Bank Limited, Taiwan
Sao Westdeutsche Landesbank Vostok Commerzbank AG TANZANIA
Deutsche Bank Fortis Bank, S.A., DARES SALAM
Gazprombank Lloyds Tsb Bank PLC Citibank Tanzania Ltd
VTB Bank WESTLB AG THAILAND
SAUDI ARABIA Deutsche Bank Sociedad Anonima BANGKOK
JEDDAH Caixa D’estalvis De Catalunya Tarragona I Bank of Ayudhya Public Company Limited
National Commercial Bank, SRILANKA Bharat Overseas Bank Ltd.
State Bank of India, COLOMBO Bangkok Bank Public Company Ltd.
RIYADH Citibank NA Bank of America N.A.
Samba Financial Group ICICI Bank Limited The Bank of Tokyo Mitsubishi UFJ LTD
Bank Muscat Mashreq Bank Citibank NA
Deutsche Bank AG Standard Chartered Bank Export Import Bank of Thailand
Saudi Hollandi Bank Deutsche Bank A.G., Hong Kong & Shanghai Banking Corp Ltd.
National Bank of Pakistan Commercial Bank Of Ceylon PLC, Kasikornbank Public Company Limited
Al-Rajhi Bank People’s Bank, Sri Lanka Mizuho Corporate Bank Ltd.
Emirates NBD PJSC Axis Bank Limited Standard Chartered Bank
SENEGAL SWEDEN Sumitomo Mitsui Banking Corp.
DAKAR STOCKHOLM JP Morgan Chase Bank N.A.
Citibank NA Citibank International PLC Deutsche Bank A.G.
SIERRA LEONE DNB NOR Bank Thai Bank Public Company Limited
FREETOWN Skandinaviska Enskilda Banken TUNISIA
Standard Chartered Bank Svenska Handelsbanken TUNIS
SINGAPORE Nordea Bank Sweden AB Citibank NA
SINGAPORE CITY SWED Bank TURKEY
Intesa BCI S.P.A. HSBC Bank PLC ISTANBUL
Bank of America N.A. MALMO Albaraka Turk Participation Bank
The Bank of Tokyo Mitsubishi UFJ LTD Skandinaviska Enskilda Banken Citibank Naturkiye Merkez Subesi
JP Morgan Chase Bank N.A. Svenska Handelsbanken HSBC Bank A.S.
Citibank NA Nordea Bank AB Fortis Bank A.S.
Commerzbank AG GOTEBORG Turkiye Garanti Bankasi AS
Credit Lyonnais Skandinaviska Enskilda Banken ING Bank A.S.
Deutsche Bank AG Svenska Handelsbanken Deutsche Bank Istanbul
DNB Nor Bank ASA Nordea Bank AB AK Bank TAS,
Skandinaviska Enskilda Banken AB SWED Bank Kuveyt Turk Katilim Bankasi A.S.
Meespierson Asia Ltd. SWITZERLAND Aktif Yatirim Bankasi A.S.
Fortis Bank S.A. / N.V. GENEVA Denizbank A.S.
Svenska Handelsbanken ABN AMRO Bank Sekerbank TURK A.S
HSBC. Credit Agricole (Suisse) SA Finansbank As, Turkey
Woori Bank ING Bank (Switzerland) Ltd. Finansbank AS,
ICICI Bank Limited Banque Cantonale De Geneve Banco Espirito Santo SA
ING Bank N.V. Banque De Commerce Et De Placements S.A. UAE
Bank of New York Bnp Paribas (Suisse) SA DUBAI
Malayan Banking Berhad ZURICH Abu Dhabi Commercial Bank
Mizuho Corporate Bank Limited ABN AMRO Bank Intesabci S.P.A.
Nordea Bank Finland PLC INTESABCI Bank (Suisse) HSBC Bank Middle East
Bank of Nova Scotia Citibank NA Mashreq Bank PSC
Rabobank, Credit Suisse Citibank NA
RZB-Austria Habib Bank AG Zurich Emirates Bank International PJSC
Standard Chartered Bank Zuercher Kantonakbank Habib Bank AG.
Sumitomo Mitsui Banking Corp. United Bank AG, Emirates Islamic Bank
UBAF-Union De Banques Arabes Et Francaises Deutsche Bank AG Standard Chartered Bank
Axis Bank Limited HSBC Bank PLC. Dubai Islamic Bank,
ICICI Bank Limited LAUSANNE Emirates National Bank of Dubai SAE
Habib Bank Limited Bank Of Beirut (UK) Limited, Woori Bank

Axis Bank Ltd Intesa Sanpaolo SPA, Mizuho Corporate Bank Ltd.
United Bank Limited,. Crown Agents Bank Limited Wells Fargo Bank N.A.
Deutsche Bank AG, Exim Exchange Company (UK) Limited Standard Chartered Bank
ICICI Bank Limited, Emirates NBD PJSC, U.K. TULSA,OK
The National Bank of Ras Al-Khaimah Habib-UK PLC. Bank of Oklahoma NA
Commercial Bank of Dubai URUGUAY SAN FRANCISCO
ABU DHABI MONTEVIDEO Bank of America, N.A
Deutsche Bank AG, Citibank NA The Bank of Tokyo Mitsubishi UFJ LTD
Noor Islami Bank (Noor Bank) UAE Bankboston NA Wells Fargo Bank, N.A.
First Gulf Bank USA MINNEAPOLIS,MN
FUJAIRAH New York, NY U.S. BANK
National Bank of Fujairah ABN AMRO Bank N.V. WASHINGTON
UGANDA Intesabci S.P.A. International Bank for Reconstruction &
Citibank Uganda Limited Deutsche Bank Trust Company Americas Development (IBRD)
Standard Chartered Bank Bank of America N.A. International Finance Corporation
UKRAINE Union Bank Of California, N.A. BOSTON
KIEV The Bank of Tokyo Mitsubishi UFJ LTD. Fleet National Bank
Credit Dnepr Bank, JP Morgan Chase Bank NA CALIFORNIA
Deutsche Bank AG Citibank NA Silicon Valley Bank,
Citibank NA Commerzbank AG CLEVELAND
UK Credit Lyonnais National City Bank Cleveland
London Deutsche Bank AG CHARLOTTE,NC
Banca Intesa S.P.A. DNB NOR Bank ASA Wells Fargo Bank N.A.
Bank Mandiri (Europe) Ltd Habib American Bank CHICAGO, IL
Bank of America N.A. Woori Bank ABN AMRO Bank N.V.
The Bank of Tokyo Mitsubishi UFJ LTD. Bank of New York Bank of America N.A.
Banco De Sabadell S.A. Bank Leumi USA Lasalle National Bank
Sonali Bank (UK) Mizuho Corporate Bank Ltd. Bank of Montreal
Confederacion Espanola De Cajas De Ahorros HSBC Bank USA UZBEKISTAN
JP Morgan Chase Bank N.A. Mashreq Bank PSC TASHKENT
Citibank NA Nordea Bank Finland PLC, National Bank for Foreign Economic Activity
Commerzbank AG Standard Chartered Bank of The Republic Of Uzbekistan
Deutsche Bank AG Sumitomo Mitsui Banking Corporation VIETNAM
DNB NOR Bank ASA WESTLB AG HANOI
Habib Bank AG Wells Fargo Bank N.A. The Bank of Tokyo Mitsubishi UFJ LTD.
Woori Bank ICICI Bank Limited Citibank NA
ICICI Bank UK Limited National Bank of Pakistan, NY, U.S.A. Woori Bank
ING Bank N.V. Bank of Oklahoma N.A. Standard Chartered Bank
Bank of New York City National Bank USA Mizuho Corporate Bank Ltd.
LLOYDS TSB Bank PLC United Bank Limited Asia Commercial Bank
Mizuho Corporate Bank Ltd. AMSOUTH Bank Joint Stock Commercial Bank for Investment
& Development
Mashreq Bank PSC Keybank National Association
Vietnam Joint Stock Commercial Bank
Nordea Bank Finland Plc National City Bank
Nedbank LTD Union Planters Bank N.A. USA for Industry and Trade
National Westminster Bank PLC Banco De Sabadell, HO CHI MINH CITY
Wells Fargo Bank N.A. Bank Boston International The Bank of Tokyo Mitsubishi UFJ LTD
Raiffeisen Zentralbank AG U.S. Bank HSBC
Standard Chartered Bank U.S. Bank Trust Asia Commercial Joint Stock Bank, Vietnam
Sumitomo Mitsui Banking Corporation Bank of The West MINH CITY
Europe Limited Sovereign Bank JP Morgan Chase Bank N.A.
Banco Popolare Di Verona E Novara SCRL People’s United Bank National Association Deutsche Bank AG
Westlb AG LOS ANGELES, CA ZAMBIA
ABN AMRO Bank N.V. Intesabci S.P.A. Citibank Zambia Ltd
Unicredit Bank AG The Bank of Tokyo Mitsubishi UFJ LTD. Standard Chartered Bank Zambia Ltd
HSBC Bank PLC Cathay Bank ZIMBABWE
Standard Chartered Bank Zimbabwe Limited
ABBREVIATIONS
ABB Association of Bankers, Bangladesh IT Information Technology
AC Audit Committee IAS International Accounting Standard
ADC Alternative Distribution Channel IPO Initial Public Offering
ALCO Asset Liability Committee IVR Interactive Voice Response
ALS Assured Liquidity Support LAPS Loan Application Processing System
ATM Automated Teller Machine LC Letter of Credit
BACH Bangladesh Automated Clearing House MANCOM Management Committee
BAS Bangladesh Accounting Standard MCR Minimum Capital Requirement
BB Bangladesh Bank (Central Bank of Bangladesh) MD&A Management Discussion & Analysis
BFRS Bangladesh Financial Reporting Standard MFIs Micro Finance Institutions
BORC Bank Operational Risk Committee MICR Magnetic Ink Character Recognition
BRMC Bank Risk Management Committee MOR Monthly Operation Report
BRPD Banking Regulation and Policy Department NBFI Non-bank Financial Institution
(of Bangladesh Bank) NII Net Interest Income
CAR Capital Adequacy Ratio NPL Non Performing Loan (Classified Loan)
CMU Cash Management Unit NCBs Nationalized Commercial Banks
CP Commercial Paper NRB Non Resident Business
CSU Customer Support Unit OBU Offshore Banking Unit
CRR Cash Reserve Ratio OCI Other Comprehensive Income
CRGM Credit Risk Grading Matrix PCBs Private Commercial Banks
CSR Corporate Social Responsibility PC Purchase Committee
CDBL Central Depository Bangladesh Limited PD Probability of Default
CDCS Certified Documentary Credit Specialist POS Point of Sale
CRISL Credit Rating Information and Services Ltd. PPG Product Program Guidelines
DCFCL Departmental Control Function Check List PRI Prime Risk Indicator
DEPZ Dhaka Export Processing Zone QMS Quality Management System
DR Disaster Recovery RBCA Risk Based Capital Adequacy
EBL Eastern Bank Limited RBIA Risk Based Internal Audit
EBLAML EBL Asset Management Limited RFCD Resident Foreign Currency Deposit
EBLIL EBL Investments Limited RWA Risk Weighted Assets
EBLSL EBL Securities Limited RMG Readymade Garments
EC Executive Committee ROA Return on Assets (excluding contingent items)
ECAI External Credit Assessment Institution ROE Return on Equity
EFT Electronic Fund Transfer SAMD Special Asset Management Division
EMI Equal Monthly Installment SFU Structured Finance Unit
EPZ Export Processing Zone SAFA South Asian Federation of Accountants
E&S Risk Environmental and Social Risk SME Small and Medium Enterprise
ETP Effluent Treatment Plant SLR Statutory Liquidity Ratio
FD Fixed Deposit STP Straight Through Processing
FTP Fund Transfer Pricing SRP Supervisory Review Process (Pillar II of Basel II)
FY Fiscal Year (July to June) TFP Trade Finance Program
GDP Gross Domestic Product TREC Trading Right Entitlement Certificate
GOB Government of Bangladesh UBS Universal Banking System (Core Banking Solution)
GTFP Global Trade Finance Program WACRG Weighted Average Credit Risk Grade
HFT Held for Trading
HRD Human Resources Division
ICAB Institute of Chartered Accountants of Bangladesh.
ICAAP Internal Capital Adequacy Assessment Process
ICCD Internal Control & Compliance Division
IFC International Finance Corporation
306 Annual Report 2016 Eastern Bank Ltd. NOTICE AND PROXY FORM
EASTERN BANK LIMITED

HEAD OFFICE
JIBAN BIMA BHABAN
10, DILKUSHA COMMERCIAL AREA
DHAKA-1000.
NOTICE OF THE 25TH ANNUAL GENERAL MEETING

NOTICE is hereby given to all the Members of Eastern Bank Limited (EBL) that the 25th Annual General Meeting (AGM) of the Company (EBL)
will be held on Thursday 27 April 2017 at 10.30 AM at Spectra Convention Centre Limited (SCCL), King’s & Green Hall (Ground Floor), House #
19, Road # 7, Gulshan-1, Dhaka-1212 to transact the following Agenda:
AGENDA
1. To receive, consider and adopt the Profit & Loss Account of the Company for the year ended 31 December, 2016 and the Balance Sheet as at
that date together with the Reports of the Auditors and the Directors thereon.
2. To declare the Dividend for the year ended 31 December, 2016 as recommended by the Board of Directors.
3. To elect Directors.
4. To appoint the Auditors of the Company for the term until the next Annual General Meeting and to fix their remuneration.
By order of the Board of Directors

Dated, Dhaka
22 March 2017
Safiar Rahman, FCS

DMD & Company Secretary
NOTES:
n The Board of Directors recommended for payment of 20% (Twenty Percent) Cash Dividend and issuance of 5 % (Five Percent) Stock
Dividend (Bonus Shares) on the profit of the Bank as at the close of business on 31 December 2016.
n The ‘Record Date’ in lieu of Book Closure will be on Tuesday, 11 April 2017. The Shareholders whose names would appear in the Register of
Members of the Company and/or in the Depository on the ‘Record Date’ (11 April 2017) will be eligible to attend the 25th AGM and entitled
to the Dividends as mentioned above.
n A Member eligible to attend the Annual General Meeting (AGM) is entitled to appoint a Proxy to attend and vote on his/her behalf. The Proxy
may not be a Member of the Company. Forms of Proxy, duly stamped, must be deposited at the Registered Office of the Company at least 48
hours before the time fixed for the Meeting.
n Annual Report, Attendance Slip and Proxy Form along with the Notice are being sent to all the Members by Post/Courier Service. The
Members may also collect the Proxy Form from the Registered Office of the Company (EBL).
n Hon’ble Members are requested to update their respective BO Accounts with Taxpayer’s Identification Number (e-TIN) through
Depository Participant (DP) latest by 10 April 2017, failing which Income Tax at Source will be deducted from payable Dividend @ 15%
(Fifteen Percent) instead of @ 10% (Ten Percent) as per amended IT Ordinance-1984 under Section 54.
n Hon’ble Members are also requested to update their Bank Accounts Number, Address, Cell No and E-mail Address through Depository
Participant (DP) latest by 10 April 2017.
n No Gift/Gift Coupon/Food Box etc. to be distributed at the 25th AGM, in Compliance with the Bangladesh Securities and Exchange
Commission’s Circular No. SEC/CMRRCD/2009-193/154 dated 24 October 2013 and Regulation 24 (2) of the Listing Regulations, 2015 of both
the Stock Exchanges (DSE & CSE).
B÷vY© e¨vsK wjwg‡UW

cÖavb Kvh©vjq
Rxeb exgv feb, 10, w`jKzkv evwbwR¨K GjvKv
XvKv-1000
cÖw· dig
Avwg/Avgiv-------------------------------------------wVKvbv---------------------------------------------------------------------------------
B÷vb© e¨vsK wjwg‡UW Gi †kqvi‡nvìvi wnmv‡e GZØviv Rbve/‡eMg ---------------------------------------------------------‡K wVKvbv--------
------------------------------------------------------------------------------------------------------------A_ev Zuvi AcviMZvq Rbve/‡eMg
---------------------------------------------------------------------------------------------- †K wVKvbv----------------------------------
-----------------------------------------------------------Avgvi/Avgv‡ì cÖw· wnmv‡e Avgvi/Avgv‡ì c‡¶ 2017 Bs mv‡ji 27 GwcÖj †ivR
e„n¯úwZevi, ‡¯úKUªv Kb‡fbkb †m›Uvi wjwg‡UW (Gm,wm,wm, Gj), wKsm GÛ wMÖb nj (wbP Zjv), nvDR bs#19,‡ivW bs#7, ¸jkvb-1, XvKv-1212,
XvKvq AbywôZe¨ †Kv¤úvbxi 25Zg evwl©K mvaviY mfvq Ges cieZ©x †h †Kvb g~jZex mfvq Dcwˉ’wZ ‡_‡K †fvU †Ìqvi Rb¨ wbhy³ Kijvg|
A`¨ 2016 Bs mv‡ji ---------------------gv‡mi ---------------------Zvwi‡L Avgvi/Avgv‡ì m¤§y‡L wZwb ˉ^v¶i Ki‡jb|
ivRˉ^ wU‡KU
†kqvi‡nvìv‡ii ˉ^v¶i------------------------- wek UvKv
cÖw·i ˉ^v¶i----------------------------------
†dvwjI/weI bs-------------------------------
jÿ¨bxqt
h_vh_fv‡e c~ib K‡i GB cÖw· dig mfvi AvUPwjøk (48) N›Uv c~‡e© †Kv¤úvbxi cÖavb Kvh©vj‡q Rgv w`‡Z n‡e|÷v¤ú I ˉ^v¶iwenxb cÖw· êa e‡j
we‡ewPZ n‡e bv| †kqvi‡nvìvi I cÖw·i ˉ^v¶i †Kv¤úvbxi bw_f‚³ bgybv ˉ^v¶‡ii mv‡_ wgj _vKv evÃbxq| cÖw·i bvg m¤^wjZ cÖw· wb‡qvM msµvšÍ
`wjj Ges cvIqvi Ae GUb©x ev Ab¨ †Kvb ¶gZv cÖ`vbcÎ ev †bvUvix cvewjK KZ©©„K mZ¨vwqZ ¶gZv cÖ`vbc‡Îi Abywjwc mfv Abyôv‡bi wba©vwiZ
mg‡qi AvUPwjøk (48) N›Uvi c~‡e© †Kv¤úvbxi cÖavb Kvh©vj‡q Rgv †`qv bv n‡j †Kvb e¨w³ D³ mfvq cÖw· wnmv‡e KvR Ki‡Z cvi‡eb bv|
B÷vY© e¨vsK wjwg‡UW

cÖavb Kvh©vjq
Rxeb exgv feb, 10, w`jKzkv evwYwR¨K GjvKv
XvKv-1000
†kqvi‡nvìvi / cÖw·i nvwRiv cÎ

Avwg/Avgiv 27 GwcÖj 2017 †ivR e„nˉúwZevi ‡ejv 10.30 NwUKvq ‡ˉúKUªv Kb‡fbkb †m›Uvi wjwg‡UW (Gm,wm,wm, Gj), wKsm GÛ wMÖb nj (wbP
Zjv), nvDR bs#19,‡ivW bs#7, ¸jkvb-1, XvKv-1212 XvKvq AbywôZe¨ B÷vb© e¨vsK wjwg‡UW Gi 25Zg evwl©K mvaviY mfvq Avgiv/ Avgv‡ì
Dcwˉ’wZ wjwce× Kijvg|
†kqvi‡nvìv‡ii bvg------------------------------------------------ ˉ^v¶i-----------------------------------------
†kqvi msL¨v------------------------------------------------------- †dvwjI/weI bs--------------------------------
cÖw·i bvg---------------------------------------------------------- ˉ^v¶i------------------------- ---------------
jÿ¨bxqt
†h mKj †kqvi‡nvìviMb wb‡R A_ev cÖwZwbwai gva¨‡g mfvq Dcwˉ’Z _vK‡Z Pvb, mfvˉ’‡j cÖ‡e‡ki c~‡e© GB nvwRiv cÎ h_vh_fv‡e c~ib K‡i
wba©vwiZ KvD›Uv‡i Rgv w`‡Z n‡e Ges †Kv¤úvbx‡Z iw¶Z ˉ^v¶‡ii mv‡_ GB ˉ^v¶‡ii wgj _vK‡Z n‡e|

Ebl Ar 2016

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Ebl Ar 2016

Uploaded by

Copyright:

Available Formats

annual report 2016

LEVERAGING CORE STRENGTHS

STRENGTHS compliance culture, service excellence, and state-of-the-art

Preamble Letter of Transmittal 6

Organizational Vision & Mission 9

Business Model Business Model and Value Creation 32

Stakeholders’ Financial Highlights 54

Governance Directors’ Responsibility Statement 67

Corporate Our Corporate Citizenship Strategy 142

Management Financial Review 146

Financial Statement on Integrity of Financial Statements 181

Supplementary Annual Report Disclosure Checklist 292

Notice and Notice of the 25th AGM 306

Safiar Rahman, FCS

SCOPE AND BOUNDARY OF INTEGRATED REPORT

bottlenecks, lack of adequate supply of energy to production

VISION & MISSION

Service Excellence g We passionately drive customer delight.

Openness g We share business plan.

Trust g We care for each other.

Commitment g We know our roadmap.

Integrity g We say what we believe in.

Responsible Corporate Citizen g We are tax-abiding citizen.

g Maintaining a pool of motivated workforce

As the key agent to supervise and advise and also to

M. Ghaziul Haque Mir Nasir Hossain

A.M. Shaukat Ali Md. Showkat Ali Chowdhury

Salina Ali Anis Ahmed

Meah Mohammed Abdur Rahim Mufakkharul Islam Khasru

Ormaan Rafay Nizam Gazi Md. Shakhawat Hossain

Ali Reza Iftekhar

A visionary banker and a dynamic leader, Ali Reza Iftekhar is an

Hassan O. Rashid Md. Khurshed Alam

Mehdi Zaman Omar F. Khandaker

S. M. Akhtaruzzaman Chowdhury Safiar Rahman

Standing from left to right Sitting from left to right

Habibur Rahman Ahmed Shaheen

Masudul Hoque Sardar Akhtar Kamal Talukder

Nazeem A. Choudhury Ali Reza Iftekhar

Expanded Management Team (EMT)

Central Compliance Unit (CCU)

CODE OF CONDUCT AND ETHICAL GUIDELINES

BUSINESS MODEL AND VALUE CREATION

Our Communication Channels

Risk Management Division (RMD)

Special Assets Management Division (SAMD)

Brand and Communication

Risk and Capital Corporate

Capital Market Operations

Bills Pay Machines

Internal Control and Compliance (ICC)

Information Technology (IT)

Human Resources (HR)

Finance and Accounts (F&A)

Credit Risk Management (CRM)

Credit Administration (CAD)

A snapshot of value created for the stakeholders

Material Issues Influencing Factors EBL’s Approach

OUR PRODUCTS AND SERVICES

Prudent banking is a result of the board’s

THE RECOGNITIONS MADE US PROUD

We assure our valued cardholders that EBL is always vigilant to

REVIEW OF THE MANAGING